RBS acted as Sole Dealer Manager for Intergas Central Asia (ICA) to repurchase part of its USD 600 million 6.375% Notes due 2017. The transaction was extremely successful as close to USD 75 million bonds were tendered and ICA could easily buy-back 100% of the targeted USD 60 million (nominal value) of bonds.

For detailed information please see the attached Deal Report:
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RBS acted as Sole Dealer Manager for Intergas Central Asia (ICA) to repurchase part of its USD 600 million 6.375% notes due 2017. The purpose of the transaction was to reduce ICA’s indebtedness, decrease its future interest expense and realise a gain on the bonds repurchased at an attractive discount to par.
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ICA’s principal business activities include management, maintenance and operation of the natural gas transportation system of Kazakhstan; transportation of natural gas through a system of pipelines; and storage of natural gas.
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We launched the transaction on 28 January 2009 and started to collect investor feedback through a Modified Reverse Dutch Auction. A Modified Reverse Dutch Auction allows investors tendering at or below the issuer’s chosen buy-back price to be paid the same price. This structure maximises price discovery and allows the issuer to optimise the buy-back price and the level of take-up.
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Noteholders wishing to sell their notes either indicated a sell price within the range or had the option of not offering their Notes at a specific price, in which case the noteholders accepted the repurchase price determined by ICA within the repurchase price range, but had the benefit of having their sell orders “filled first”. Noteholders could tender their Notes at a single price or at different prices.
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ICA targeted USD 60 million (10% of the outstanding bond) based on a pre-launch secondary market offer price of 63%. Whilst there was known to be a significant US investor base, ICA determined not to open the offer to the US because of the added inflexibility of US tender rules.
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Close to USD 75 million bonds were tendered within a price range most of which were at the higher end of the interval. ICA fixed the price at 70% which meant approximately USD 42 million cash was deployed in the auction.