Development Bank of Kazakhstan JSC (a subsidiary of "Baiterek" NMH JSC, hereinafter referred to as DBK, the Bank) has successfully placed Eurobonds on the international capital markets: additional placement of Eurobonds in US dollars and a new issue denominated in tenge.
As part of the additional placement of Eurobonds of the 17th tranche (the first issue is in April 2025), the Bank placed an additional volume of 200 million US dollars with a maturity until April 2030 and a yield of 5.562%. The coupon rate is 5.625%. The geography of investors is represented by the UK (34%), Kazakhstan (26%), Europe (28%), the USA (11%) and the Middle East (1%).
At the same time, the Bank carried out a new issue of Eurobonds denominated in tenge – the 18th tranche – in the amount of 55 billion tenge with a maturity of 3 years. The coupon rate and yield at placement were 17.3%. Investors in this issue included a wide range of participants from Kazakhstan (32%), the United States (31%), the Middle East (14%), the United Kingdom (11%), and Europe (12%).
The funds raised will be used to finance a number of projects in the fields of renewable energy, infrastructure and manufacturing.
The Eurobonds were successfully placed due to favorable market conditions, high liquidity, and strong investor interest. At its peak, the order book exceeded the offering size by 1.3 times for the USD tranche and by 1.1 times for the tenge tranche. Notably, the transactions attracted investors who did not participate in DBK’s April placement, indicating a broadening and diversification of the Bank’s investor base. The joint lead managers and bookrunners for the issuance were Societe Generale, Citi, and Halyk Finance.
"These placements have become an important step for us in strengthening our presence on the international capital markets. We managed to attract financing on attractive terms, fixing the yield on dollar-denominated bonds below the initial issue level by 13.8 basis points. It is especially important that the issue in the national currency became the only placement of Eurobonds in tenge in 2025. This once again underlines our reputation as the most flexible and proactive issuer from the CIS region," said Marat Yelibayev, Chairman of the DBK Management Board.
The Bank continues to pursue its strategy of diversifying funding sources and strengthening its presence in the global debt capital markets by supporting the implementation of priority projects in non-resource sectors of the economy.
