JPMorgan - KASE

The issue costs related to the Notes are $1.8 million and are recorded as deferred charges, and
will be amortized, as well as $0.7 million of deferred charges related to the Term Facility (see
below).
Long term debt of Kazgermunai
The Kazgermunai debt is non-recourse to the Corporation. The amounts included below
represent 50% of the total debt, which has been included in the financial statements on a
proportionate consolidation basis (see Note 6).
As at December 31
2001 2000
Kazgermunai senior debt ................................................................ 27,319 50,167
Kazgermunai subordinated debt .......................................................... 22,181 21,196
Loan from government of Kazakhstan ..................................................... 11,568 10,685
61,068 82,048
Kazgermunai senior debt
The senior debt bears interest at LIBOR plus 3% and is unsecured. Accrued interest is added to
the principal on a semi-annual basis.
During the year ended December 31, 2001 Kazgermunai repaid $26.7 million of principal and
interest accrued on its senior debt.
Kazgermunai subordinated debt
The subordinated debt bears interest at LIBOR plus 3% and is unsecured. Accrued interest is
added to the principal on a semi-annual basis. Repayment of the debt will begin after full
repayment of the senior partner debt.
Loan from government of Kazakhstan
The loan from the government of Kazakhstan relates to exploration and development work
performed by Yuzneftegas, a state owned enterprise that was purchased by Hurricane Kumkol
Limited in 1996 and Yuzneftegas subsequently had its name changed to Hurricane Kumkol
Munai, on the Akshabulak, Nuraly and Aksai fields prior to the formation of Kazgermunai. The
loan bears interest at LIBOR plus 3% and is unsecured. Accrued interest is added to the principal
on a semi-annual basis. Repayment of the debt will begin after full repayment of the senior debt.
Kazgermunai is restricted from paying dividends until all outstanding loans have been repaid in
full.
Term facility
The Corporation entered into a secured, Term Facility for $60 million. The facility will be repaid in
fifteen equal monthly installments commencing October 2002 and bears interest at LIBOR plus
3.5%. As at December 31, 2001 the Corporation had drawn $20 million under this facility, $4
million of which is classified as short-term debt as of December 31, 2001.
ShNOS bonds
On March 20, 2001 ShNOS registered 250,000 unsecured bonds (par value $100) in the amount of
$25 million with the National Securities Commission of the Republic of Kazakhstan (the “ShNOS
bonds”). The ShNOS bonds have a three-year maturity, are due on March 31, 2004 and bear a
coupon rate of 10% per annum. The ShNOS bonds are listed on the Kazakh Stock Exchange.
As at December 31, 2001 134,800 bonds had been issued for consideration of $13.2 million.
The ShNOS bonds contain certain covenants including a limitation on indebtedness.
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