Press releases

DBK ANNOUNCES THE RESULTS OF THE TWO NEW EUROBOND ISSUES OFFER

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The excess of market demand over supply during the formation of order books indicates confidence and high interest in the Bank's securities on the part of local and international investors. Investors' demand for the announced supply of tenge denominated Eurobonds amounted to 151%. The demand for the Bank's dollar-denominated Eurobonds exceeded the supply by 2 times.

“DBK has collected global applications for the purchase of two issues of Eurobonds for 500 million dollars and 100 billion tenge. This is a successful deal, it indicates a high interest in the Bank's bonds, DBK is a reliable issuer and foreign investors trust the national currency of Kazakhstan. This is important for the Bank and our clients, given that DBK specializes in lending to large projects, the funds raised in this format will help the bank lend to the real sector of the country's economy,” noted the Chairman of the Management Board of DBK Abay Sarkulov.

The geography of placement of the Bank's bonds is represented by 24 countries of the world, while in respect of the tenge issue of Eurobonds, most of the proposed volume was distributed towards investors from the USA (50%) and Great Britain (32%), and the rest in favor of investors from Europe (17%) and Kazakhstan (1%). For the issue denominated in US dollars, the largest part of the proposed volume was placed in favor of investors from Kazakhstan (36%), the share of investors from the United States was 32%, from Europe - 19%, from the United Kingdom (9%), from Asia and the Middle East and North Africa (4%). In total, more than 130 investors from all over the world took part in the placement of the two issues.

On the eve of the opening of the order books as part of the Bank's roadshow, international investor meetings were held in the format of personal and group videoconferences from April 26 to April 28.

The oversubscription of the order book allowed the Bank to determine the final rate of return to maturity at 3% per annum, which is a record low rate of return for the Bank and the lowest rate of return in US dollars among issuers of new issues with maturity over 10 years in the CIS countries.

With regard to tenge eurobonds, it is also worth noting that earlier DBK has already carried out three issues of tenge denominated eurobonds. The debut issue of Eurobonds in the amount of 100 billion tenge was sold to investors in December 2017, 100 billion tenge - in April 2018, 62.5 billion tenge - in February 2020.

The deal was organized by JP Morgan, Citigroup, VTB Capital, Halyk Finance.

АО «Банк Развития Казахстана»
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