Halyk Finance announces successful completion of transactions on offering of Eurobonds of Development Bank of Kazakhstan

/KASE, April 16, 2024/ – Subsidiary organization of Halyk Bank of Kazakhstan Halyk Finance JSC (Almaty, in the heading and hereinafter – Halyk Finance) as a joint bookrunner, today provided Kazakhstan Stock Exchange (KASE) with the following notice: quote Halyk Finance reports that as part of the program for issuing medium-term notes, Development Bank of Kazakhstan JSC (hereinafter – "DBK") placed two issues of Eurobonds: 3-year Eurobonds denominated in US dollars in the amount of $500 million and 3-year Eurobonds, denominated in tenge, in the amount of 100 billion tenge. At the same time, the tenge issue is the debut issue of sustainable development Eurobonds, placed by the Kazakh issuer. These transactions are part of DBK's set of measures to manage its obligations, which also includes a tender offer to repurchase two previously issued tranches of DBK Eurobonds denominated in tenge and US dollars, maturing in 2025. Halyk Finance acted as a joint lead manager and bookrunner for these transactions on issue and placement of Eurobonds. The collection of orders for purchase of DBK Eurobonds took place on April 4, 2024. On the territory of the Republic of Kazakhstan, orders were collected through a subscription on Kazakhstan Stock Exchange JSC (hereinafter – KASE). When opening the order book, the indicative yield to maturity was set in the range of 13.25%–13.50% per annum for Eurobonds in tenge and at 5.875% per annum for Eurobonds in US dollars. During the order collection process, there was high demand from international and Kazakh investors. Investor demand exceeded supply by 2 times for each Eurobond issue. As a result, DBK placed Eurobonds denominated in tenge with a yield to maturity of 13.25% and a coupon rate of 13.0%, and Eurobonds denominated in US dollars with a yield to maturity of 5.6% and a coupon rate of 5,5%. More than 100 investors from all over the world took part in the placement of two issues. In the global order book for the purchase of tenge Eurobonds, orders from international investors provided more than 87% of the demand, and for those in dollars – 88%. The transactions were settled on April 15, 2024. Based on results of the placement of DBK Eurobonds in tenge and US dollars, orders from investors who submitted them through subscription to KASE were executed in the amount of 13.2 billion tenge and 61 million US dollars. At the same time, the share in the volume of executed orders for DBK Eurobonds in tenge and US dollars submitted through KASE amounted to 13% and 12%, respectively. "The successful placement of DBK Eurobonds demonstrated that international investors have great interest in securities of Kazakh issuers, including bonds denominated in tenge. These transactions are very important for our market and will become benchmarks for subsequent bond placements by Kazakh issuers, both in tenge and in US dollars", commented Roman Asilbekov, Deputy Chairman of the Board of Halyk Finance. The Eurobonds were listed on KASE and the Vienna Stock Exchange (Vienna MTF). *** Development Bank of Kazakhstan JSC is a development institution of the Republic of Kazakhstan, whose mission is to promote the sustainable development of the national economy of the Republic of Kazakhstan by investing in the non-resource sector of the country. The sole shareholder of Development Bank of Kazakhstan JSC is the joint stock company NMH "Baiterek" JSC. Halyk Finance JSC is a leading investment bank in Kazakhstan, providing a full range of investment banking services, including financial consulting and underwriting, corporate financing services, brokerage services and securities trading, market maker services on KASE and AIX trading platforms, investment portfolio management, as well as regular analytical services. The company is the first and only broker-dealer in Kazakhstan to receive an international investment grade credit rating ("BBB-" from the international rating agency "Fitch Ratings"). Halyk Bank of Kazakhstan JSC is a leading financial group and 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 services for insurance, leasing, brokerage and asset management services) to its retail clients, small and medium-sized business clients and corporate clients. The bank also carries out its operations in Russia, Georgia, Kyrgyzstan, Tajikistan and Uzbekistan. unquote [2024-04-16]