/KASE, May 16, 22/ – Subsidiary organization of Halyk Bank of Kazakhstan
Halyk Finance JSC (Almaty, in the heading – Halyk Finance) today has provided
Kazakhstan Stock Exchange (KASE) with the following information message:
quote
On May 12, 2022, settlements were made for a transaction related to the issue
and placement of DBK's Eurobonds denominated in US dollars. The issue of
Eurobonds in US dollars was placed in the amount of USD500 million with a
maturity of 3 years (hereinafter referred to as the "Eurobonds"). Halyk Finance
acted as a Joint Lead Manager and Bookrunner for this issue. This transaction is
part of DBK's set of measures to manage its obligations and prolong debt
obligations, which also includes a tender offer to buy back previously issued
DBK's Eurobonds maturing in December 2022 (hereinafter referred to as the
"Bonds"), with payment of interest for the purchased Bonds in cash, for a total
principal amount of up to USD700 million Settlements on early bids under the
tender offer for the Bonds were made on May 12, 2022 simultaneously with
settlements on DBK's Eurobonds. The proceeds from the placement of DBK's
Eurobonds were used to finance the purchase of the Bonds in accordance with
the tender offer for the Bonds. Halyk Finance acted as a Joint Dealer-Manager in
the tender offer for the Bonds.
The collection of global orders for purchase of DBK's Eurobonds took place on
May 5, 2022. The collection of orders in the territory of the Republic of
Kazakhstan was carried out by means of subscription on Kazakhstan Stock
Exchange JSC (hereinafter – "KASE") simultaneously with the collection of global
orders. Despite the higher expectations of international investors to the level
of indicative yield in a volatile debt capital market, the yield to maturity
during the placement was 5.95 % per annum.
The volume of orders submitted via subscription to KASE amounted to
USD228.5 million and was executed in full. Thus, in favor of investors from
Kazakhstan, the largest part of the proposed volume of the Eurobond issue
(47%) was placed, the share of investors from the USA was 21 %, from Europe –
16 %, from the UK – 15 %, from Asia – 1 %. DBK Eurobonds were listed on
KASE and Vienna Stock Exchange (Vienna MTF). This transaction was the first
Eurobond issue from the CIS region since the start of the military conflict in
Ukraine in February 2022 and, in the current volatile market conditions, set a
benchmark for subsequent dollar issues from Kazakhstan.
unquote
The full version of the message is available on KASE website –
https://kase.kz/files/emitters/HFIN/hfin_relizs_160522.pdf
[2022-05-16]