Page 16 - bne_October 2018_20181001

16 I Companies & Markets bne October 2018
Kazakh government invites international banks to pitch roles for state oil company KMG listing in London
bne IntelliNews
The Kazakh government has invited international investment banks to pitch for roles in listing the KazMunayGaz (KMG) state oil company in London, Reuters reported, citing five sources familiar with the matter.
The news indicates progress in the Kazakh government’s plans for initial public offerings (IPOs) of the largest state-run companies, which are set to be floated in 2018-2020 with the goal of selling at least 25% stakes in each company.
In the fourth quarter of this year, the ex-Soviet state hopes to float the world’s biggest uranium miner Kazatomprom, national carrier Air Astana and soon-to-be near monopolist of the local telecoms market Kazakhtelecom.
At least five more IPOs of large state-owned companies are expected to list within the next two years, culminating in national oil producer KazMunaiGas’ (KMG’s) listing that
is expected to bring the privatisation to an end in 2020.
In hopes of drawing in liquidity to the newly launched Astana stock exchange, the government wishes to also list the firms domestically. The exchange, however, is not in the position
to list KMG until the second half of 2019, the report said. This is in line with the previously announced plans.
KMG accounts for 28% of the total crude oil and gas condensate output in the Central Asian nation.
Cash-strapped Belarus seeks to borrow $2bn on Chinese, Russian markets after 2019
bne IntelliNews
The Belarusian government is going to borrow up to $2bn on Chinese and Russian markets after 2019, while the nation is not gong to cooperate with the International Monetary Fund (IMF) due to the fact that the country's authoritarian President Alexander Lukashenko seeks to avoid "a shock for residents".
"We are preparing to place sovereign bonds on local markets. These are the markets of China and Russia. We hope that we will be able to borrow a total of up to $2bn on Chinese and Russian markets," Yermolovich said in a televised interview on September 9.
Yermolovich added that Lukashenko said earlier that a new reform programme with the IMF, "will be a shock for our residents and this cannot be done. This is why, the government has refused an IMF programme," the minister said.
In August, Lukashenko changed the nation's prime minister, four deputies and a number of ministers in a move which
he explained as necessary after attempts by the government to implement unpopular economic reforms, including reforms demanded by the IMF, and the fact that some senior officials allegedly "drink a lot", which is "unacceptable".
According to Fitch, foreign currency debt amortisation and interest payments will remain high, averaging $3.4bn in 2019-2020.
Sustained reduction in refinancing risks will depend on continued progress on diversifying external sources of financing, refinancing opportunities of bilateral debt (Russia) and the pace of local market development, the agency believes.
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