Development Bank of Kazakhstan JSC has offered two Eurobond issues. The first is denominated in US dollars in the amount of USD 500 million, the second is denominated in tenge in the amount of KZT 65 billion.
Parameters of new Eurobond issues are as follows:
Issue of Eurobonds denominated in US dollars:
Volume – USD 500 million, maturity of securities – 5 years, yield –5.30% per annum.
Issue of Eurobonds denominated in tenge:
Volume – KZT 65 billion, maturity of securities – 3.5 years, yield – 13.50% per annum.
Settlements on both Eurobond issues were conducted on October 23, 2024.
It is worth to note that according to results of order book formation, demand of investors for dollar issue of Eurobonds exceeded the volume of offer by more than one and a half times. Eurobonds aroused considerable interest among investors, which indicates investment attractiveness of securities of the Development Bank of Kazakhstan, in particular, and Kazakhstan as a whole.
Geography of offering dollar and tenge Eurobonds is represented by the United States, Great Britain, other European countries, Kazakhstan and countries of the Middle East.
In total, 98 investors generated demand for both issues of securities.
"High demand exceeding the offer by more than one and a half times demonstrates confidence of local and international investors in DBK bonds. The funds raised will be used to finance priority sectors of the economy, including agro-industrial complex, manufacturing industry and infrastructure. Issue of securities confirms the Bank's high position in the international capital markets and will support implementation of strategically important projects for sustainable development of Kazakhstan", said Marat Yelibayev, Chairman of the Bank's Management Board.
Joint bookrunners of the issue were Citi, J.P. Morgan, ICBC, Societe Generale and Jusan Invest. The Bank's Eurobonds are included in listing of Kazakhstan Stock Exchange JSC (KASE) and are admitted to trading on Vienna MTF.
