Halyk Finance announces successful completion of deal on issue and placement of Eurobonds of Development Bank of Kazakhstan, denominated in US dollars

16.05.22 14:47
/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]