New ICMA clauses debut in Kazakhstan sovereign

Author: Ashley Lee | Published: 15 Oct 2014

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....