Kazakhstan’s sovereign bond has become
the first to wholly adopt the International Capital Markets
Association’s (ICMA) new model collective action
clause (CAC) and pari passu clause.
The $2.5 billion offering was offered under
Regulation S and Rule 144A in two tranches, a $1.5 billion
tranche of 3.875% ten-year bonds and a $1 billion tranche of
4.875% 30-year bonds. The deal, which closed yesterday, is the
first from Kazakhstan since 2000.
But the most important innovation in this deal was
the inclusion of ICMA’s revised model clauses,
which were only published at the end of August.
"We were very gratified to see an issuer adopt all of
ICMA’s model clauses so soon after they were
published," said Leland Goss, general counsel at Icma....