Development Bank of Kazakhstan JSC (DBK) placed two issues of Eurobonds on the Vienna MTF platform, QazMonitor reports citing the press service of DBK.
Terms: Eurobonds denominated in US dollars totaling $500 million were issued with a circulation period of 3 years and a coupon rate of 5.5% per annum. The Bank managed to achieve the narrowest spread to US Treasuries for a benchmark issue of a BBB-rated financial institution from emerging markets of all time, and the narrowest spread for DBK, respectively.
Sustainability Eurobonds, denominated in tenge, totaling ₸100 billion ($223,345,800) were issued with a circulation period of 3 years and a coupon rate of 13% per annum.
This placement represents the first issuance of sustainability Eurobonds from the CIS region for a non-sovereign issuer in local currency in the entire history of Eurobond issuances by CIS issuers. The proceeds from the issuance will be directed towards financing and refinancing projects that meet both green and social project criteria.
The formation of the order book showed investor demand for each Eurobond issue exceeded the supply volume by more than twice.
In total, more than 110 investors generated demand for both securities issues.
The placement geography of dollar and tenge Eurobonds includes the USA, the UK, other European countries, Kazakhstan, and the countries of the Middle East and North Africa.
Settlements for both Eurobond issues were carried out on April 15.
Citi, J.P. Morgan, Mashreq, Société Générale and Halyk Finance served as the joint bookrunners for the bond issue.
The Bank's Eurobonds are included in the listing of Kazakhstan Stock Exchange JSC (KASE) and the Vienna MTF platform.
SPO: Sustainable Fitch and the AIFC Center for Green Finance provided a positive Second-Party Opinion regarding the compliance of DBK’s green and sustainable finance Concept 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.