Development Bank of Kazakhstan offered Eurobonds to the amount of $1 billion

November 28. KASE

Development Bank of Kazakhstan offered Eurobonds to the amount of $1 billionDevelopment Bank of Kazakhstan (Astana), bonds of which are officially listed on Kazakhstan Stock Exchange (KASE), provided to KASE the following press release of November 28, 2012:

On November 26, 2012, Development Bank of Kazakhstan completed international offering of Eurobonds to the amount of $1 billion for the maturity period of 10 years and coupon rate 4.125% APR.

The deal is the largest under one tranche among Kazakhstan banks. This offering has historically low parameters of yield and coupon rate among non-sovereign issuer of CIS countries.

The issue structure supposes the exchange of five year Eurobonds of the bank to the amount of $500 million with the coupon rate 5.5% APR with the maturity in 2015. This is the first deal in the world on indirect exchange of Eurobonds to US dollars.

The order book to buy the bank Eurobonds by 3.4 times exceeded the planned amount of raising. Upon completion of orders collection the bank has set the cut-off price on yield to maturity at 4.326% APR.

On geographical distribution 87% of issue falls on institutional investors on USA, EU, Asia and other foreign countries. Among Kazakhstan investors 13% of issue has been offered.

The organizers of the issue are JP Morgan, VTB Capital and Halyk Finance.