KAZKOMMERTS SECURITIES ANNOUNCES START OF COLLECTION OF ORDERS FOR PARTICIPATION IN OFFERING EUROBONDS OF DEVELOPMENT BANK OF KAZAKHSTAN

/KASE, April 26, 2018/ – Kazkommerts Securities (subsidiary of Kazkommertsbank) (Almaty, in the heading and hereinafter – Kazkommerts Securities), a member of Kazakhstan Stock Exchange (KASE), today provided KASE with the following notice: quote Hereby, Kazkommerts Securities announces the startof collection of orders from members of Kazakhstan Stock Exchange (KASE) for participating in the initial offering of Eurobonds of the Development Bank of Kazakhstan (the Issuer) being issued under laws of a foreign country (hereinafter – Eurobonds). All orders from investors are accepted through the trading system "Subscription" on KASE. Acceptance of orders from prospective investors through the trading system "Subscription" will start simultaneously with the offering of the Eurobonds on the territory of the foreign country, and on the same terms of Eurobonds pricing, as during their offering on the territory of the foreign country, taking into account possible specifics inherent to the relevant securities markets. Joint Bookrunners: Kazkommerts Securities, MUFG, SG CIB and VTB Capital. BONDS' PARAMETERS: -------------------------------------------------------------------------------- Issuer name: Development Bank of Kazakhstan Expected issuer's ratings: Moody’s: Baa3 / Fitch: BBB- Issue’s ratings: Moody’s: Baa3 / S&P: BB+ / Fitch: BBB- (all outlooks "Stable") Seniority: Senior unsecured debt Format: Rule 144А and Regulation S Circulation term: 5 years Volume of issue: up to KZT 100,000,000,000 (one hundred billions) Offering currency: KZT (Kazakhstani tenge) Settlement currency: USD (all payments are made in USD, including settlement, interest charges and final payment) Interest rate: Fixed semiannual, 30/360 Primary price range: in the range of half of 9% Settlement date: May 4, 2018 Issue redemption date: May 4, 2023 Face value of one security of the issue: KZT 50,000,000 (fifty million) or the higher face value dividable by KZT 250,000 (two hundred thousand) Law /Listing: English law / Kazakhstan Stock Exchange (KASE) and London Stock Exchange Bookrunners: Kazkommerts Securities, MUFG, SG CIB (B&D),VTB Capital Settlement exchange rate: USD/KZT 326.28 (for settlement purposes) as set by the National Bank of Kazakhstan as at April 26, 2018 Offering time: Order book is open, deal closing is expected today Additional info: Please indicate order amounts in KZT -------------------------------------------------------------------------------- PROCEDURE FOR OFFERING OF EUROBONDS IN KAZAKHSTAN: -------------------------------------------------------------------------------- Order collection day April 26, 2018 Order collection start time: 2:00 p.m. (Almaty time) Indicative end time for order collection: 6:00 p.m. (Almaty time) Expected date of price April 26, 2018 (London time) and executed investor orders amount fixing: Settlement date: May 4, 2018 Executed orders fixing date: April 26 (London time) Indicative yield at offering Determined upon results of collection of investors orders. The indicative yield to maturity benchmark is in the range of 9% APR. Order price: The order price is represented by the yield to maturity expressed in annual percentage. In case of market orders "the market yield" is indicated as the price. Stabilisation according to FCA/ICMA. -------------------------------------------------------------------------------- Terms of settlement of Eurobonds: Submitting a purchase order, the buyer thus confirms the availability of funds in payment of Eurobonds he buys in an operational brokerage account at Kazkommerts Securities or the availability of operational trade facilities involving one of the counterparts below: - MUFG Securities EMEA plc - Societe Generale Corporate & Investment Banking - VTB Capital Plc and undertakes to make settlements when the buyer’s order is executed. In case of execution of a submitted purchase order, the responsibility for execution (settlement) rests with the trade participant who submitted the purchase order. With queries, as well as for additional information, please contact the following representative of Kazkommerts Securities: Indira Alkenova, tel. +7 (727) 244 65 05 (ext. 2 or 58025), e-mail: Ialkenova@kazks.kz Naina Romanova, tel. +7 (727) 244 65 05 (ext.58012), e-mail: Nairomanova@kazks.kz THE INFORMATION CONTAINED HEREIN IS NOT INTENDED FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN. THESE MATERIALS DO NOT CONSTITUTE AN OFFER TO SELL SECURITIES IN THE UNITED STATES OF AMERICA; SECURITIES MAY NOT BE OFFERED FOR SALE OR SOLD IN THE UNITED STATES OF AMERICA WITHOUT REGISTRATION OR EXEMPTION THAT EXEMPTS FROM REGISTRATION PROVIDED FOR IN U.S. SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND POLICY THERETO. THERE IS NO INTENTION TO REGISTER ANY PORTION OF THE OFFERINGS IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES OF AMERICA AND TO OFFER THE SECURITIES FOR SALE IN THE UNITED STATES UNDER RULE 144 AND THE U.S. SECURITIES ACT OF 1933, AS AMENDED, TO "QUALIFIED INSTITUTIONAL BUYERS" (QIB), AS THIS TERM IS DEFINED IN THE RULE, WHO ARE ALSO QUALIFIED BUYERS ("QB"), AS THIS TERM IS DEFINED IN SECTION 2 (A) (51) OF THE U.S. INVESTMENT COMPANY ACT OF 1940, AS AMENDMED, AND WILL BE OFFERED FOR SALE OUTSIDE THE UNITED STATES ONLY TO PERSONS WHO ARE NOT PERSONS FROM THE UNITED STATES PURSUANT TO REGULATION S OF THE U.S. SECURITIES ACT OF 1933, AS AMENDED. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A REQUEST TO MAKE AN OFFER TO PURCHASE; AND NO SALE OF SECURITIES LISTED HERE MAY NOT BE HELD IN ANY JURISDICTION IN WHICH SUCH OFFER, SALE OR REQUEST WILL BE UNLAWFUL, PRIOR TO REGISTRATION, THE APPLICABILITY OF THE EXEMPTION FROM REGISTRATION OR QUALIFICATION UNDER THE SECURITIES ACT OF ANY SUCH JURISDICTION. PROPOSAL AND DISTRIBUTION OF THIS STATEMENT AND OTHER INFORMATION REPORTED HEREIN MAY BE RESTRICTED BY LAW; AND PERSONS WHO RECEIVED THIS COMMUNICATION OR SUCH OTHER INFORMATION, SHOULD LEARN AND OBSERVE ANY SUCH RESTRICTIONS. ANY FAILURE TO COMPLY WITH SUCH RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE SECURITIES ACT OF ANY SUCH JURISDICTION. WE REMIND TO THE RECIPIENTS OF THIS ANNOUNCEMENT, WHO INTEND TO BUY ANY SECURITIES IN THE FUTURE, THAT ANY SUCH PURCHASE OR SUBSCRIPTION MUST BE CARRIED OUT SOLELY ON THE BASIS OF THE INFORMATION CONTAINED IN ANY FINAL BASE PROSPECTUS AND FINAL ISSUE PROSPECTUS ISSUED IN CONNECTION WITH ANY SUCH SECURITIES. THIS ANNOUNCEMENT HAS NOT BEEN MADE OR APPROVED BY AN AUTHORISED PERSON FOR THE PURPOSES OF SECTION 21 OF THE FINANCIAL SERVICES AND MARKETS ACT OF 2000, AS AMENDED (THE "FSMA") (UNITED KINGDOM). THIS ANNOUNCEMENT SHOULD NOT BE AND MUST NOT BE PROVIDED TO THE GENERAL PUBLIC IN THE UNITED KINGDOM OR ANY PERSON IN THE UNITED KINGDOM EXCEPT IN CIRCUMSTANCES WHERE SECTION 21 OF THE FSMA DOES NOT APPLY. THIS ANNOUNCEMENT IS DISTRIBUTED ONLY AMONG THOSE AND SENT ONLY TO (I) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM OR (II) INVESTMENT PROFESSIONALS FALLING WITHIN THE SCOPE OF ARTICLE 19 (5) OF THE FINANCIAL SERVICES AND MARKETS ACT OF 2000 OF THE ORDER OF 2005 (ON FINANCIAL PROMOTION) ("ORDER") OR (III) TO COMPANIES WITH HIGH VALUE AND OTHER PERSONS TO WHOM IT CAN BE LEGITIMATELY REPORTED UNDER ARTICLE 49 (2) FROM (A) TO (D) OF THE ORDER (ALL SUCH PERSONS REFERRED TO IN PARAGRAPHS (I), (II) AND (III) ABOVE JOINTLY REFERRED TO AS "RELEVANT PERSONS"). NO PERSON WHO IS NOT A RELEVANT PERSON MUST NOT ACT ON THE BASIS OF THIS ANNOUNCEMENT OR RELYING UPON IT. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES WILL BE AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE POSSIBLE ONLY FOR THE PERSONS CONCERNED. IN THE MEMBER STATES OF THE EUROPEAN ECONOMIC AREA, THIS ANNOUNCEMENT IS SENT ONLY TO PERSONS, WHO ARE "QUALIFIED INVESTORS" IN ACCORDANCE WITH ARTICLE 2 (1) (E) 2003/71/EC DIRECTIVE ("DIRECTIVE ON PROSPECTUS") ("QUALIFIED INVESTORS "). THIS ANNOUNCEMENT IS AN ADVERTISEMENT FOR THE PURPOSES OF THE APPLICABLE MEASURES FOR THE APPLICATION OF THE DIRECTIVE ON PROSPECTUS. ‪RATING IS NOT A RECOMMENDATION TO BUY, SELL OR HOLD SECURITIES AND MAY BE REVISED, SUSPENDED OR WITHDRAWN AT ANY TIME BY AN ORGANIZATION, WHICH HAS ASSIGNED THAT RATING. SIMILAR RATINGS FROM THE VARIOUS TYPES OF ISSUERS AND VARIOUS TYPES OF BONDS DO NOT NECESSARILY MEAN THE SAME THING. THE VALUE OF EACH RATING SHOULD BE ANALYZED INDEPENDENTLY OF ANY OTHER RATING. unquote [2018-04-26]