KASE, October 15, 2020/ – Subsidiary of Halyk Savings Bank of Kazakhstan "Halyk Finance" (Almaty, in the heading and hereinafter – Halyk Finance), a member of Kazakhstan Stock Exchange (KASE), today provided KASE with the following notification:

quote

Subsidiary of Halyk Savings Bank of Kazakhstan "Halyk Finance" (Almaty, in the heading and hereinafter – Halyk Finance) and SkyBridge Invest Joint Stock Company (hereinafter – SkyBridge Invest) as Joint Lead Managers and Joint Book-runners announce the successful completion of the issuance and offering of the 16th series of 12.5-year US $750 million Eurobonds of the National Company KazMunayGas (in the heading and hereinafter, the KMG) in October 2020.

On September 23, 2020 KMG and KMG FINANCE SUB B.V. ("KMG Finance") requested consent from holders of KMG's Eurobonds due in 2022 and 2023 with a total outstanding principal amount of US $907 million ("the Bonds") to amend the terms of the Bonds to introduce early redemption of the Bonds and at the same time offered to buyback the Bonds by KMG. Upon expiration of the early voting period (October 6, 2020) for the offer, in which Halyk Finance and SkyBridge Invest acted as Joint Dealers-Managers and Joint Agents for Acceptance of Consent, KMG and KMG Finance obtained the consent of the Bondholders to amend the terms of the Bonds and/or their offer to buyback the Bonds in the total nominal amount of US $776 mln. The quorum required to make a decision on the offer (2/3 of the total amount of the outstanding issue) for each of the above Bond issues was reached within 2 weeks from the date of the offer announcement.

On October 6, KMG collected orders for purchase of its new 12.5-year Eurobonds with expected face value of the issue of at least US $ 500 mln. Orders from investors in Kazakhstan were collected through the Kazakhstan Stock Exchange (the “KASE”) simultaneously with the international bookbuilding. The initial price guidance was set at yields to maturity of around 3.875%, but backed by strong investor support was later revised to 3.75% with expected face value of the issue of at least US $ 750 mln. The boon was revised for more then four times. Upon the books’ closing on the same day, a very robust global demand represented by orders of 147 investors was approximately U.S.$ 3.1 bn. This allowed KMG to set the final yield to maturity at 3.5% APR, which is lowest-ever USD yield for KMG and the lowest-ever yield achieved by any CIS issuer for a 10+ year new issue.

Kazakh investors' bids submitted through KASE were satisfied in full for a total amount of US $43.1 million or approximately 6% of the total issue. The geographical structure of the Eurobond holders is as follows:

-------------------------------
Geographical diversity Share, %
---------------------- --------
U.S.                   49%     
Great Britain          34%     
Europe                 9%      
Kazakhstan             6%      
Asia and 
the Middle East        2%      
-------------------------------

The new Eurobonds are rated BBB- (Fitch) / Baa3 (Moody’s).

The Eurobonds were settled on October 14, 2020. The proceeds received by KMG from Eurobond placement will be used by KMG to fund early redemption of its outstanding Eurobonds due 2022 and 2023 with the face value of US $907 mln.

Mr. Talgat Ayupov, Halyk Finance’s Chairman of Management Board, comments: “"We are very proud of the results achieved and that for the first time in such transactions the interest of our corporate and retail clients in brokerage services exceeded the interest of professional market participants (including assets under management), amounting to 83% of the local book. Over the last ten years, there were only five deals with similar structure in Kazakhstan, and in each of them Halyk Finance was a joint bookrunner, which indicates that issuers continue to trust Halyk Finance to conduct such unique and complex transactions on liability management" Talgat Ayupov, Chairman of the Management Board of Halyk Finance, said.

The placement of KMG Eurobonds is one of the most successful transactions for Kazakhstani issuers on capital markets. Correct positioning of the Issuer was reflected in a very high-quality and large scope order book, showing the existing great interest of international and Kazakh investors in the Issuer. SkyBridge Invest is very pleased to be able to help KMG achieve its target issue volume at attractive price parameters. We are focused on building quality and long-term relationships with issuers, and look forward to further joint initiatives on international and Kazakh capital markets", Sholpan Ainabayeva, Chairman of the Management Board of SkyBridge Invest JSC, said.

***

JSC Halyk Finance is a leading investment bank in Kazakhstan, providing a full range of investment banking services, including financial consulting and underwriting (issues and primary placements of securities of the corporate issuers), corporate financing services (including consulting services for the acquisition/sale of shares and partnership shares of the companies and corporate debt restructuring), brokerage services and securities trading, market-maker services, investment portfolio management, as well as regular analytical services.

JSC Halyk Bank of Kazakhstan is a leading financial group and a leading retail bank in Kazakhstan with the largest customer base and distribution network. The Bank is developing as a universal financial group, offering a wide range of services (banking insurance, leasing, brokerage and asset management services) to its retail customers, small and medium-sized businesses and corporate clients. The Bank also operates in Russia, Georgia, Tajikistan and Kyrgyzstan.

SkyBridge Invest is one of the leading investment companies providing a wide range of financial and advisory services for raising debt and equity capital, mergers and acquisitions, as well as brokerage services in Kazakhstan and international markets. More information about the Company is available on the corporate Internet resource: www.sbinvest.kz.

Alma Buirakulova Director, Investment Banking Director SkyBridge Invest JSC www.sbinvest.kz Tel.: + 7 (727) 330 33 50

Oleg Khvan Director, Financial Consulting and Underwriting Department Halyk Finance JSC www.halykfinance.kz Tel.: + 7 (727) 331 59 77

PR Service Halyk Bank of Kazakhstan JSC www.halykbank.kz Tel. +7 (727) 259 08 16

unquote

[2020-10-15]