DBK placed Eurobonds in US dollars and debut sustainable development bonds in tenge

Development Bank of Kazakhstan JSC (a subsidiary of «Baiterek» NMH JSC) placed two issues of Eurobonds. The first is denominated in US dollars in the amount of 500 million US dollars, the second represents the debut issue of Eurobonds for sustainable development in the amount of 100 billion tenge.

The parameters of new Eurobond issues are as follows:

Issue of Eurobonds denominated in US dollars:

Amount – 500 million US dollars, securities circulation period – 3 years, coupon rate – 5.5% per annum. The Bank managed to achieve the narrowest spread to US Treasuries for a benchmark issue of a BBB rated financial institution from emerging markets of all time (and the narrowest spread for DBK, respectively);

Debut issue of sustainable development Eurobonds denominated in tenge:

Amount – 100 billion tenge, securities circulation period – 3 years, coupon rate – 13% per annum.

As part of Kazakhstan’s first international issue of sustainable development Eurobonds in local currency, Sustainable Fitch and the AIFC Center for Green Finance provided a positive external assessment in the form of a second-party opinion regarding the compliance of the Bank’s Concept in the field of green and sustainable finance with the requirements of the sustainable development bond standards of the International Capital Markets Association in terms of the quality of management of proceeds, selection and disclosure of information about ongoing projects.

Settlements for both Eurobond issues were carried out on April 15.

It should be noted that based on the results of the formation of the order book, investor demand for each Eurobond issue exceeded the supply volume by more than twice. Eurobonds aroused significant interest among investors, which indicates the investment attractiveness of the securities of the Development Bank of Kazakhstan, in particular, and Kazakhstan in general.

The geography of placement of dollar and tenge Eurobonds is represented by the USA, Great Britain, other European countries, Kazakhstan and the countries of the Middle East and North Africa.

In total, more than 110 investors generated demand for both issues of securities.

«The excess of market demand over supply by more than two times shows the confidence and high interest in DBK securities on the part of local and international investors. The issue of tenge Eurobonds for sustainable development by the Bank became the debut for this type of securities in Kazakhstan. The proceeds from their placement will be used to finance projects that meet the criteria of «green» and sustainable development, including infrastructure, transport, renewable energy and other areas», said Marat Yelibayev, Chairman of the Bank’s Board.

The issue was jointly bookended by Citi, J.P. Morgan, Mashreq, Societe Generale and Halyk Finance. The Bank's Eurobonds are included in the listing of Kazakhstan Stock Exchange JSC (KASE) and the Vienna MTF platform.

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