HALYK FINANCE ANNOUNCES COMPLETING DEAL ON ISSUE AND OFFERING OF TENGE-DENOMINATED EUROBONDS OF DEVELOPMENT BANK OF KAZAKHSTAN
15.12.17 16:42
KASE, December 15, 2017/ – Subsidiary organization of Halyk Bank of Kazakhstan
Halyk Finance (Almaty, in the heading and hereinafter – Halyk Finance), a member
of Kazakhstan Stock Exchange (KASE), has provided KASE with a press release
dated December 14, 2017:
quote
JSC Halyk Finance has successfully acted as a Joint Bookrunner in the debut
Tenge-denominated KZT 100 bn 3-year Eurobond by JSC "Development Bank
of Kazakhstan" ("DBK").
On December 7th, DBK had opened a global investor book for its debut Tenge-
denominated 3-year Eurobond with an expected nominal issue amount of KZT
100 bn. Orders from investors in Kazakhstan were collected through the Kazakhstan
Stock Exchange (the "KASE") concurrently with the international bookbuilding
process. The initial price guidance was set at a yield-to-maturity in the range
of 9.625%-9.875% p.a. Upon the books' closing, a very robust investor demand in
the amount of c. KZT 170 bn (c. $510 MM) had allowed DBK to set the final annual
yield-to-maturity at the lowest end of the announced range i.e. at just 9.625% p.a.
The coupon rate was set at 9.50% p.a. and the total issue amount was confirmed
at KZT 100 bn (c. $300 MM).
The securities' settlement has been made on December 14th. The Eurobond was
issued under DBK's $2 bn Medium Term Note Programme, in which Halyk Finance acts
as a Joint Arranger and Dealer.
This groundbreaking transaction has marked the first-ever public Eurotenge
bond offering to a wide range of international and domestic investors by a
Kazakhstani issuer. The orderbook for the deal was subscribed by a group of
high-quality institutional investors from the UK, US Offshore, Continental
Europe and Kazakhstan, and had reached a substantial demand even despite
aggressive levels of the initial price guidance.
The final yield-to-maturity at 9.625% represents a c. 70 bps spread over
Kazakhstan's sovereign domestic yield curve and is one of the lowest premiums
achieved among all CIS quasi-sovereign peers of DBK to their respective
sovereign yield curves across all currencies – hard and soft. The final DBK
pricing also marks the lowest yield-to-maturity among all primary placements of
KZT-denominated domestic bonds on the KASE made by Kazakhstan's quasi-sovereign
companies in 2017.
Mr. Arnat Abzhanov, Halyk Finance's CEO, says "DBK has traditionally been an
ice-breaker by executing truly innovative transactions in the international and
domestic capital markets, and its deals often become breakthrough debuts not
only for DBK and Kazakhstan, but also for the whole CIS region. This
Eurotenge issue's success evidences both global investors' healthy appetite
towards DBK's credit risk and growing interest from the international investor
community to Tenge instruments. I am positive that this Eurotenge fundraising –
which fully encompasses international investor demand – will be of strong
interest to many Kazakhstani issuers."
Earlier in December 2012, Halyk Finance had successfully acted as a Joint
Dealer Manager in DBK's intermediated exchange offer for the bank's Eurobond
due December 2015, which became the 1st transaction ever done globally for
USD-denominated bonds, engraving a prominent liability management benchmark for
ll issuers out of Kazakhstan. In addition, in August 2012, Halyk Finance had
fruitfully acted as a Joint Lead Manager on DBK's debut MYR 240 MM 5-year Sukuk
al-Murabahah issue with a profit rate of 5.50% which marked the 1st-ever Sukuk
issue out of the CIS region with DBK becoming the 1st-ever issuer from the CIS/CEE
region to tap the Malaysian market.
***
JSC Development Bank of Kazakhstan is a development institution of the
Republic of Kazakhstan with the mission to promote the sustainable development
of the national economy by investments into the non-resource
sector of the country. JSC Development Bank of Kazakhstan is 100% owned by
JSC National Managing Holding "Baiterek".
JSC Halyk Finance is the leading investment bank in Kazakhstan rendering a
full range of investment banking services including consulting and underwriting,
corporate finance (M&A advisory and corporate debt restructurings), brokerage
sales and trading with market making on the KASE, investment portfolio
management and research.
JSC Halyk Bank of Kazakhstan is one of Kazakhstan's leading financial
services groups and a leading retail bank with the largest customer base and
distribution network among banks in Kazakhstan. The Bank is developing as a
universal financial group offering a broad range of services (banking,
insurance, leasing, brokerage and asset management) to its retail, small and
medium enterprises and corporate customers. Halyk Bank also operates in
Russia, Georgia and Kyrgyzstan.
Press service
Halyk Bank
tel. +7 727 2 590 891
www.halykbank.kz
Farkhad Okhonov
Consulting & Underwriting
JSC Halyk Finance
tel. +7 727 357 31 77
www.halykfinance.kz
unquote
[2017-12-15]