KazMunaiGaz National Co., Kazakhstan’s state energy producer, will raise $2.5 billion selling bonds to the National Oil Fund (KAIRNOF) in 2013, removing the need to borrow abroad this year.
KazMunaiGaz (KMGZ) is in talks with the government about the interest rate, the Astana-based oil and gas producer said by e-mail today. The company will sell a second tranche of bonds to borrow $1.5 billion from the oil fund in 2015, it said.
The funds will be invested in the Kashagan oil development, one of the world’s biggest fields, according to a Feb. 29 statement from President Nursultan Nazarbayev’s press office. KazMunaiGaz has about $3.2 billion of debt coming due by the end of next year, out of a total of $13.6 billion outstanding, according to data compiled by Bloomberg.
KazMunaiGaz plans to increase investment spending 7 percent to $3.8 billion this year, followed by $2.3 billion in 2013, according to Raiffeisen Research.
The central Asian country’s National Oil Fund is managed by the central bank.
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