PRESS RELEASE
Almaty
February 14, 2011
Nurbank announces a change of issuer for five-year eurobonds, resulting in the bank taking over all obligations related to these bonds from its subsidiary Nurfinance B.V., as stipulated in the relevant documents signed by the participating parties (Paying Agency Agreement, Trust Deed).
It is worth noting that in 2006, Nurbank issued eurobonds amounting to $150 million. The issuer was Nurfinance B.V. (Rotterdam, Netherlands)—a special purpose vehicle established for the issuance of Nurbank’s five-year international bonds. The eurobonds, with a coupon rate of 9.375%, are due for redemption in October this year.
The decision to replace the issuer was approved by the noteholders at an extraordinary meeting held in London last August.
As explained by Rauan Daukenov, Deputy Chairman of the Board of Nurbank, this step was motivated by the potential for optimizing taxation as provided by the current legislation.1 “By the decision of the Listing Commission of the Kazakhstan Stock Exchange, our debt securities have been included in the official KASE list. This allows our bank not only to take advantage of certain tax benefits but also to increase the liquidity of the notes, which will positively impact the volume of stock exchange transactions in Kazakhstan’s domestic market,” emphasized Mr. Daukenov.
1 The new Tax Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget," effective from January 1, 2009, provides an exemption from tax withheld at the Kazakhstan source of payment on remuneration for debt securities that are listed on a stock exchange operating in the territory of the Republic of Kazakhstan on the date such remuneration is accrued.