Development Bank of Kazakhstan (a subsidiary of “Baiterek” National Managing Holding JSC) has issued a Eurobond in the amount of USD 500 million.
Parameters of new Eurobond issues are as follows:
Volume – USD 500 million, maturity of securities – 5 years, the coupon rate is 5.625% per annum, the currency is the US dollar. DBK issued Eurobonds with a maturity yield of 5.7% per annum, which is one of the lowest spreads in the company's history for medium-term borrowing. The spread against US Treasury bonds was 159 basis points.
Settlements regarding the issue of Eurobonds were conducted on April 7, 2025.
Notably, based on the outcomes of the application process, the demand for the Eurobonds issued by the Bank exceeded the supply by more than 1.8 times. The Eurobonds generated significant interest among investors, which underscores the investment potential of the DBK and Kazakhstan generally.
The geographical distribution of investors in DBK Eurobonds includes: Kazakhstan, the United States, Great Britain, Europe, the Middle East, and Asia. According to the results of the bond issuance, 62 investors were represented in the Eurobond distribution.
"The timely and effective placement of the issue, in light of the subsequent market downturn, allowed the Bank to offer attractive terms and attract a diverse group of international and domestic investors. Additionally, the financial stability, transparency of operations, and reputation as one of the leading Kazakhstan-based issuers in the international capital market all contributed to the success of the bond offering. The funds raised by the Bank will be used to finance strategically important projects, including the development of the manufacturing industry and infrastructure, which will undoubtedly make an important contribution to the sustainable development of the economy of Kazakhstan" said Marat Yelibayev, Chairman of the Bank's Management Board.
The joint bookrunners of the issue were Citi, J.P. Morgan, Societe Generale and Halyk Finance. The Bank's Eurobonds are listed on the Kazakhstan Stock Exchange (KASE) and are admitted to trading on Vienna MTF.
Also on March 25, 2025, DBK invited holders of its outstanding Eurobonds with a coupon rate of 5.75% and maturing in May 2025 to participate in a tender for the repurchase of these Eurobonds for the amount of the principal debt up to 325,146,000 USD (which corresponds to the outstanding amount of the principal debt under these Eurobonds). The validity period of the tender offer and the deadline for accepting applications is set for April 22, 2025. Citi, J.P. Morgan, Societe Generale and Halyk Finance act as joint dealer managers of the tender.
