Kazakhstan's Alliance Bank talks $100 million to $150 million perpetual notes at 9 3/8% to 9 5/8%

By Paul A. Harris

St. Louis, April 6 - ALB Finance BV, a Netherlands-based special purpose vehicle of JSC Alliance Bank of Kazakhstan, is talking its $100 million to $150 million offering of upper tier I perpetual notes (B1) at 9 3/8% to 9 5/8%, according to a market source.

The source also forecast that the paper will price in the middle of that range.

The perpetual notes are non-callable for 10 years and feature a coupon step-up provision in the event that the notes are not called.

For a peer comparison, the source referred to Bank CenterCredit (Kazakhstan)'s 9 1/8% perpetual notes (Ba3), which become callable in March 2016. CenterCredit priced a $100 million issue on Feb. 24. The source spotted those 9.125% notes trading Thursday at a 9.02% yield to call.

Alliance Bank is also in the market with an offering of senior notes (Ba2//BB-) that are expected to come with a five-year to seven-year maturity. The size of the senior notes tranche remains to be determined, according to the source, who added that they are expected to price sometime after the perpetual notes transaction is completed.

Credit Suisse and UBS are leading both of the Regulation S tranches.

The roadshow is expected to move to Switzerland on Friday and to wrap up in London on Monday.

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