Development Bank of Kazakhstan Issues Dollar and Tenge Eurobonds on Global Markets

The Development Bank of Kazakhstan has successfully placed two tranches of Eurobonds on international capital markets.

The issuance includes a $200 million tap of its dollar-denominated bonds originally issued in April, as well as a new tranche denominated in the Kazakh tenge, The Caspian Post reports, citing Kazakh media.

The dollar bonds, maturing in April 2030 with a 5.625% coupon, attracted strong interest from global investors, particularly in the United Kingdom, Europe, and Kazakhstan, reported the bank’s press service on July 3.

The bank also launched a new issue of tenge-denominated Eurobonds (18th tranche), raising 55 billion tenge (US$106 million). These bonds have a three-year maturity and offer a coupon rate and yield of 17.3%, drawing interest from a wide range of investors from Kazakhstan (32%), the United States (31%), the Middle East (14%), the United Kingdom (11%), and Europe (12%).

“These placements have become an important step for us in strengthening our presence on the international capital markets. We managed to attract financing on attractive terms, fixing the yield on dollar-denominated bonds below the initial issue level by 13.8 basis points,” said DBK Chairman Marat Yelibayev.

The proceeds from these bond placements will be used to finance key projects in renewable energy, infrastructure, and manufacturing.

The success of both issues was fueled by favorable market conditions, strong liquidity, and high investor interest. The lead managers and bookrunners for the bond placements were Societe Generale, Citi, and Halyk Finance.