Development Bank of Kazakhstan placed Eurodollar bonds and debut KZT- denominated sustainable development bonds

16.04.24 10:15
/KASE, April 16, 2024/ – Development Bank of Kazakhstan JSC (Astana), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release dated April 16, 2024: quote Development Bank of Kazakhstan JSC (a subsidiary of Baiterek NMH JSC, hereinafter referred to as DBK, Bank) placed two issues of Eurobonds. The first one is denominated in US dollars in the amount of 500 million US dollars, the second one is the debut issue of sustainable development Eurobonds in the amount of 100 billion tenge. The parameters of the new Eurobond issues are as follows: Issue of Eurodollar bonds: Volume – 500 million US dollars, maturity – 3 years, coupon rate – 5.5% per annum. The Bank managed to achieve the narrowest spread to United States Treasury securities for a benchmark issue of a BBB rated financial institution from emerging markets of all time (and the narrowest spread for DBK, respectively); The debut issue of sustainable development Eurobonds denominated in tenge: Volume – 100 billion tenge, maturity – 3 years, coupon rate – 13% per annum. As part of Kazakhstan's first international issue of sustainable development Eurobonds in local currency, Sustainable Fitch and the AIFC Green Finance Centre provided a positive external assessment in the form of a second-party opinion regarding the compliance of the Bank's Concept in the field of green and sustainable finance with the requirements of the sustainable development bond standards of the International Capital Market Association in terms of the quality of management of proceeds, selection and disclosure of information about ongoing projects. Settlements for both Eurobond issues were carried out on April 15. It should be noted that based on the results of the formation of the order book, investor demand for each Eurobond issue exceeded the supply volume by more than twice. Eurobonds aroused significant interest among investors, which indicates the investment attractiveness of the securities of the Development Bank of Kazakhstan, in particular, and Kazakhstan in general. The geography of placement of dollar- and tenge-denominated Eurobonds is represented by the USA, U.K., other European countries, Kazakhstan and countries of the Middle East and North Africa. A total of more than 110 investors generated demand for both issues of securities. unquote The complete press release is available on – [2024-04-16]