Halyk Finance announces successful completion of issuance and placement of KZT 62.5 billion KZT-denominated Eurobond by Development Bank of Kazakhstan

13.02.20, 11:38
/KASE, February 13, 2020/ – Subsidiary Organization of Halyk Bank of Kazakhstan Halyk Finance (Almaty, Halyk Finance in the heading and hereinafter), a member of the Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release dated February 13, 2020 today: quote Halyk Finance has successfully acted as the Joint Lead Manager & Bookrunner in KZT 62.5 billion 5-year KZT-denominated Eurobond issuance and placement by JSC “Development Bank of Kazakhstan” (“DBK”) under DBK’s $3 bn Medium Term Note Programme, in which Halyk Finance acts as the Joint Arranger and Dealer. On February 5th, DBK collected global orders for its international bonds with a maturity of 5 years and a total nominal issue amount of KZT 62.5 billion. Orders from investors in Kazakhstan were collected through the Kazakhstan Stock Exchange (the “KASE”) concurrently with the international bookbuilding. The initial price guidance was set at a yield to maturity in the range of 10.95% - 11.05% per annum. Upon the book’s closing on the same day, DBK priced the deal at the tight end of the announced range – at 10.95% YTM with the coupon rate of 10.75% per annum and the price of 99.245%. Investors’ orders through the KASE represented a total of KZT 18.75 billion of which KZT 15.75 billion was allocated by DBK, while the total issue amount was set at KZT 62.5 billion. DBK’s Eurobond transaction has been settled on February 12th, 2020. Mr. Talgat Ayupov, Halyk Finance’s CEO, says “we are proud that DBK has once again mandated Halyk Finance to act as its Joint Lead Manager and Bookrunner in such an important complex transaction which required impeccable execution under an extremely tight timeframe. This is the 3rd KZT-denominated Eurobond issue by DBK which evidences robust credit story of DBK as an issuer, attracting favorable financing under the current market conditions. Moreover, it also confirms international investor community’s confidence in Tenge instruments. The debt issuance structure employed in this transaction – attracting competitive Tenge financing through the Eurobonds offering – allowed to diversify DBK’s funding base in the national currency. We believe this is an excellent example for other Kazakhstan issuers.” Earlier in December 2017, Halyk Finance had successfully acted as the Joint Lead Manager and Bookrunner for issuance and placement of debut KZT-denominated KZT 100 billion 3-year Eurobond by DBK which had become the 1st ever public KZT- denominated Eurobond offering to a wide range of international and domestic investors by a Kazakhstan issuer. unquote [2020-02-13]