Development Bank of Kazakhstan JSC (a subsidiary of Baiterek Holding, hereinafter – DBK, the Bank) has successfully completed the placement of a dual-tranche Eurobond issuance in the international capital markets.
As part of the transaction, the Bank issued Eurobonds totaling USD 500 million with a 5.3-year maturity, a yield of 4.85%, and a coupon rate of 4.6%. The transaction achieved a record tight yield spread for DBK’s USD-denominated bonds of a similar tenor - 110.8 basis points above the interpolated U.S. Treasury yield curve.
The second tranche, denominated in Kazakhstani tenge, amounted to KZT 300 billion with a 3-year maturity, a yield and coupon rate of 18.4%, marking not only the largest tenge-denominated issuance in DBK’s history but also the largest local-currency Eurobond issuance in the region.
The Eurobonds were listed on the Vienna Stock Exchange, the Astana International Exchange of the AIFC, and the Kazakhstan Stock Exchange. J.P. Morgan, Citi Bank, and Société Générale acted as global coordinators and bookrunners, with Mashreq Bank serving as a joint bookrunner and ForteFinance JSC as the local financial advisor and underwriter.
The transaction confirmed strong investor interest in the Bank’s instruments and marked an important step in implementing DBK’s strategy to diversify its funding sources. Investor demand exceeded expectations: the order book was oversubscribed by more than 2.4 times for the USD tranche and 1.9 times for the tenge tranche.
The placement attracted a broad and geographically diverse investor base, including investors from Kazakhstan, the United States, the United Kingdom, Switzerland, the European Union, the Middle East, and East Asia.
“In an environment of highly volatile markets, DBK’s timely dual-tranche issuance allowed us to secure attractive borrowing costs and ensure funding for strategically important projects. This transaction demonstrates international investors’ confidence in DBK and confirms the Bank’s strong position as a leading regional issuer,” - said Marat Yelibayev, Chairman of the Management Board of DBK.
The attracted funds will be used to finance a number of the Bank’s investment projects and export operations in the manufacturing, metallurgical, chemical and petrochemical industries, as well as in the agro-industrial complex and transport infrastructure.
Through such transactions, DBK continues to successfully pursue its strategy of diversifying funding instruments, strengthening its position in international capital markets, and supporting priority projects that contribute to the sustainable development of Kazakhstan’s economy.
