Development Bank of Kazakhstan JSC (a subsidiary of Baiterek National Managing Holding, hereinafter – DBK or the Bank), within the framework of its ninth bond programme, placed the third and fourth bond issues on the platform of the Kazakhstan Stock Exchange (KASE).
The total placement amounted to KZT 55,150,789,000, with the coupon calculated based on the floating TONIA (Tenge OverNight Index Average) Compounded rate and a ten-year maturity, making these the Bank’s longest-term local bonds to date.
The issued securities are corporate bonds, with proceeds earmarked for financing the investment projects “Modernisation of Almaty CHPP-2 with minimisation of environmental impact” and “Reconstruction of Almaty CHPP-3”, implemented by Almaty Electric Power Stations JSC.
Sky Bridge Invest JSC, BCC Invest JSC, Halyk Finance JSC and Alatau City Invest JSC acted as financial advisers and joint underwriters for the transaction.
The successful placement confirmed strong market interest from local investors in the Bank’s instruments and marked an important step in implementing DBK’s strategy to diversify its funding sources.
“Strong demand demonstrates the high level of confidence of the local investment community in DBK’s financial instruments and the projects we finance. The funds raised will be directed towards strategically important infrastructure initiatives, underscoring our commitment to the principles of sustainable development and strengthening the Bank’s position as a key development institution in Kazakhstan’s economy,” said Marat Yelibayev, Chairman of the Management Board of Development Bank of Kazakhstan.
Investor demand exceeded expectations, with the order book oversubscribed by more than 1.6 times. The final allocation comprised 56.21% to second-tier banks and 43.79% to brokerage companies.
