Press releases

DBK successfully completed the placement of bonds

Development Bank of Kazakhstan JSC (a subsidiary of Baiterek National Management Holding JSC), on May 12, 2022, successfully completed the placement of a three-year Eurobond issue in the amount of USD 500 million and a coupon rate of 5.75% per annum.

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This was the first placement of Eurobonds throughout the CIS since the beginning of the conflict in Ukraine in February 2022. Despite market volatility ahead of the US Federal Reserve (FED) meeting on May 4, at which the US regulator raised rates by 50 basis points for the first time since 2000, DBK took advantage of positive market conditions early the next day and opened the order book for a new Eurobond issue, which was closed on the same day.

The offer of Eurobonds aroused considerable interest among investors, which indicates the continued attractiveness of the Development Bank of Kazakhstan, in particular, and Kazakhstan in general. There were over 60 different investors in the final book. The wide geography of placement of Eurobonds was represented by Kazakhstan (47%), USA (21%), continental Europe (16%), Great Britain (15%) and Asia (1%). The main share of investors were management companies (67%), as well as banks (25%), insurance and pension funds (8%).

The funds that DBK will raise as a result of the Eurobond issue will be used to buy back Eurobonds placed in 2012, which are due to be redeemed in December 2022.

J.P. Morgan Securities Plc, Citigroup Global Markets Limited, Halyk Finance JSC and MUFG Securities EMA Plc acted as joint bookrunners for the placement and dealer managers for the buyout. Kroll Issuer Services Limited was appointed as the tender agent.

We would like to remind you that in March of this year, Fitch Ratings confirmed the rating of DBK at the level of "BBB" with a stable outlook. Moody's did the same in April of this year, confirming DBK's long-term rating at "Baa2" with a stable outlook.

For reference:

Development Bank of Kazakhstan JSC, a national development institution specializing in the financing and development of large-scale infrastructure and industrial facilities in Kazakhstan. The Bank offers a convenient structure for financing projects - from the investment phase to supporting the export of finished products. The “threshold” for financing investment projects is from 7 billion tenge, for the food industry - 3 billion tenge, for export operations - from 1 billion tenge. In order to increase information transparency, the Bank has also expanded the database of publicly available information on projects that are administered, financed and reviewed by DBK. On the Bank's website, you can find information on the main conditions of financing and general information on projects.

Public Relations Service of Development Bank of Kazakhstan JSC:

Phone: 8 (7172) 79 26 08

Website: www.kdb.kz

E-mail: pressa@kdb.kz
АО «Банк Развития Казахстана»
проспект Мәңгілік Ел, здание 55 А, н.п. 15 Z05T3E2 Астана
+7 (7172) 79 26 79