HALYK FINANCE ANNOUNCED ON RESULTS OF DEVELOPMENT BANK OF KAZAKHSTAN GLOBAL BONDS IPO

/KASE, December 10, 10/ - Subsidiary organization of Halyk Bank of Kazakhstan "Halyk Finance" (Almaty), which is a Joint Lead Manager for international bonds of Development Bank of Kazakhstan (Astana), has provided to Kazakhstan Stock Exchange (KASE) the following information message. quotation starts Herewith Subsidiary organization of Halyk Bank of Kazakhstan "Halyk Finance" announces the IPO of Eurobonds (Bonds) of Development Bank of Kazakhstan (the Issuer) results, issued under the Issuer's Mid-Term Notes Issue Programme and registered in accordance with foreign state's legislation. Upon acceptance of orders on December 9, 2010, the Issuer set the cut-off price to maturity at 5.72%. The issue total volume is $500 m. $27 m (or 5.4% from the issue total volume) were distributed to Kazakhstan investors and the total volume of submitted orders of Kazakhstan investors made up about $167.47 m. In the total volume of Kazakhstan investors orders 59.7% were submitted by commercial banks, 29.9% - pension funds and 10.4% - brokerage and dealer companies and their clients. Below are final parameters of bonds issue. ------------------------------------------------------------------------------ Issuer: Development Bank of Kazakhstan ------------------------------ ---------------------------------------------- Expected ratings: S&P: BBB- Moodys: Baa3 Fitch: BBB- ------------------------------ ---------------------------------------------- Issue amount at face value: U.S.$500,000,000 ------------------------------ ---------------------------------------------- Settlements date: December 20, 2010 ------------------------------ ---------------------------------------------- Maturity date: December 20, 2015 ------------------------------ ---------------------------------------------- Offering price: 99.055% ------------------------------ ---------------------------------------------- Coupon rate: 5.50% ------------------------------ ---------------------------------------------- Coupon payment dates: June 20 and December 20 each year ------------------------------ ---------------------------------------------- Maturity to yield at offering: 5.72% ------------------------------ ---------------------------------------------- Time base at calculation of coupon amount: 30/360 ------------------------------ ---------------------------------------------- Issue form: Rule 144A / Regulations S ------------------------------ ---------------------------------------------- Denomination: U.S.$200,000 or over the nominal $1,000 fold ------------------------------ ---------------------------------------------- Joint book runners: Citi, Deutsche Bank and J.P. Morgan ------------------------------ ---------------------------------------------- Joint Leading Manager: Halyk Finance ------------------------------ ---------------------------------------------- Bonds status: senior, unsecured ------------------------------ ---------------------------------------------- Regulating law: British ------------------------------ ---------------------------------------------- Listing: Bonds are admitted to the United Kingdom Listing Department official list admitted to trades on London Stock Exchange organized market, and included to the category "rated debt securities" of Kazakhstan Stock Exchange official list ------------------------------------------------------------------------------ Development Bank of Kazakhstan is an investment institution of the Government of the Republic of Kazakhstan on funding of a non-raw material sector of economy of Kazakhstan. 100 % of shares of Development Bank of Kazakhstan belong to Joint stock company National Welfare Fund Samruk-Kazyna. NOT FOR PUBLIC DISTRIBUTION OR PUBLICATION, WHETHER DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN Citigroup Global Markets Limited, Deutsche Bank AG, АО Halyk Finance and J.P. Morgan Securities Ltd. are Joint Lead Managers of this issue. By accepting delivery of this press release you will be deemed to have represented, agreed and acknowledged that you are (i) a qualified institutional buyer, as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and are also a qualified purchaser, as defined in section 2(a)(51) of the U.S. Investment Company Act of 1940, as amended, or (ii) a non-U.S. Person (as defined in Regulation S under the Securities Act). ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESS RELEASE IN WHOLE OR IN PART IS PROHIBITED. FAILURE TO COMPLY WITH THIS DIRECTIVE OR ANY OF THE OTHER RESTRICTIONS SET FORTH HEREIN MAY RESULT IN A VIOLATION OF THE SECURITIES ACT OR THE APPLICABLE LAWS OF OTHER JURISDICTIONS. This press release does not constitute or form a part of an offer of Securities for sale in the United States (including its territories and possessions, any State of the United States and the District of Columbia). Securities may not be offered or sold in the United States without registration or an exemption from registration as provided in the Securities Act, and the rules and regulations thereunder. There is no intention to register any portion of any offering of Securities in the United States of America or to conduct a public offering of Securities in the United States. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful absent registration, an exemption from registration or qualification under the securities laws of any such jurisdiction. The distribution of this press release may be restricted by law in certain jurisdictions and persons into whose possession this press release or other information referred to herein comes should inform themselves about and observe any such restriction. This document is not a prospectus and, to the extent that it may constitute an advertisement, does not constitute an offer to sell or the solicitation of an offer to purchase Securities. Investors should not subscribe for any Securities referred to herein except on the basis of the information contained in the base prospectus relating to the Programme, as supplemented by the applicable final terms and any pricing sheet relating to the offering of such Securities. This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any offering of Securities will only be made available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Securities will be engaged in only with, relevant persons. The Joint Lead Managers are acting in the interest of the Issuer and of no one else in connection with any offering of Securities and will not be responsible to anyone other than Issuer for providing the protections afforded to clients of the Joint Lead Managers nor for providing advice in connection with such offering NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA. ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER ELECTRONIC TRANSMISSION. quotation ends [2010-12-10]