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Kazakhstan’s KKB Exits DPR Arena

Published 1 Min Read

Kazkommertsbank has bought back all the bonds in its DPR program, the bank said today on its Web site.

The redemption involved $850.4 million in outstanding notes. The company tendered $99.6 million in DPR paper on March 16.

“Acting as originator, KKB requested that the controlling parties (Ambac Assurance Corp., MBIA Insurance Corp., Financial Guaranty Insurance Co., the Asian Development Bank, and WestLB) terminate the program,” the Web site said.

Redeeming the DPR notes is not such a dramatic move given that the bonds were already paying down in an accelerated fashion.

The bonds started to pay down at twice the normal rate after they breached a ratings trigger based on the grade from Moody’s Investors Service.
A mechanism that traps flows at up to 15x the debt service was also set to kick in this month.

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