Development Bank of Kazakhstan begins tender offers for two 2025 notes

By Marisa Wong

Los Angeles, April 2 – JSC Development Bank of Kazakhstan announced it launched offers to purchase for cash any and all of its $500 million outstanding 5¾% notes due 2025 (ISIN: XS2472852610, US48129VAA44) and any and all of its KZT 62.5 billion outstanding 10¾% notes due 2025 (ISIN: XS2106835262), according to a news release on Tuesday.

For the dollar notes, the issuer is offering a tender offer consideration of $1,000 per $1,000 principal amount. The total consideration includes an early tender premium of $30 per $1,000 of notes tendered by the early participation deadline. Holders tendering after the early deadline will only be eligible to receive the tender offer consideration of $970 per $1,000 principal amount.

For the tenge-denominated notes, the issuer is offering a total consideration of KZT 245,000 per KZT 250,000 principal amount. The total consideration includes an early tender premium of KZT 7,500 per KZT 250,000 of notes tendered by the early participation deadline. Holders tendering after the early deadline will only be eligible to receive the tender offer consideration of KZT 237,500.

The issuer will also pay accrued interest.

The early tender participation deadline is 11 a.m. ET on April 15, which is also the withdrawal deadline.

The early settlement date is expected to be April 17.

The offers will expire at 11 a.m. ET on April 30.

Final settlement is expected to be on May 2.

The issuer is making the tender offers in combination with offerings of dollar-denominated and tenge-denominated bonds under its medium-term note program. The new note offerings are expected to price prior to the early tender participation deadlines and to close on or around April 15. Proceeds from the new notes are expected to be used to fund the tender offers. The issuer intends to use existing cash on hand to fund any remaining portion of the tender offers.

The tender offers are conditioned on completion of the new notes offerings. The issuer said it may waive the financing condition in respect of the issuance of one or both of the new dollar or new tenge notes.

Citigroup Global Markets Ltd. (+44 20 7986 8969; liabilitymanagement.europe@citi.com), J.P. Morgan Securities plc (+44 20 7134 2468; em_europe_lm@jpmorgan.com), JSC Halyk Finance (+7 727 339 43 73; ib@halykfinance.kz), Mashreqbank psc (DCM@mashreq.com) and Societe Generale (+33 1 42 13 32 40 or by email to: liability.management@sgcib.com) are dealer managers for the tender offers.

Morrow Sodali Ltd. (+44 20 4513 6933, 203 658-9457 and +852 2319 4130; dbk@investor.morrowsodali.com) is the information and tender agent.

The bank is based in Astana, Kazakhstan.

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