International law firm Simmons & Simmons has advised a syndicate of international lenders comprising Standard Chartered, J.P. Morgan and Commerzbank AG on a USD 785 million dual-tranche facility for Development Bank of Kazakhstan.
The borrower will in turn lend the proceeds to KazAvtoZhol National Company Joint Stock Company, Kazakhstan's national road operator, to finance road maintenance and rehabilitation works on key public road infrastructure.
The financing is backed by two guarantees in respect of the payment obligations of a state owned enterprise, issued by the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, which together cover 95% of the lenders’ exposure. The financing will support road maintenance and mediumrepair works across Kazakhstan under the National Road Rehabilitation and Repair Programme, enhancing connectivity, road safety and resilience across the country’s road network.
A Simmons & Simmons team, led by Sergei Kabonov, Partner in the firm’s energy, natural resources, infrastructure and construction (ENRIC) team, advised the lender syndicate on the transaction structure, financing documentation and the MIGA guarantee arrangements, including the design of a bespoke mechanism to accommodate the specific features of the MIGA guarantee structure.
Sergei Kabanov, commented: "We are very pleased to have worked with the lenders, MIGA and Development Bank of Kazakhstan on this important transaction. Drawing on our extensive experience advising financial institutions on MIGA-backed financings, we provided practical and constructive advice throughout the transaction, including in relation to the bespoke MIGA guarantee structure, helping to align the interests of all stakeholders and achieve a successful financial close. This transaction further builds on our experience supporting major transport infrastructure projects in Kazakhstan."
