Development Bank of Kazakhstan gives early results of tender offer

By Marisa Wong

Los Angeles, April 16 – JSC Development Bank of Kazakhstan announced the early tender results of its April 2 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).

As of the applicable early tender participation deadline, holders had tendered $163,154,000 of the 5¾% notes and KZT 20,573,500,000 of the 10¾% notes, according to a news release on Tuesday. The early tender participation deadline was 5 p.m. ET on April 15 for the dollar notes and 11 a.m. ET on April 15 for the tenge notes.

The issuer intends to accept all of the early tendered notes for purchase. Payment for the early tendered notes will be made on April 17. Payment for the tenge notes will be made in dollars at an exchange rate of KZT 446.91 per $1.00.

After the early settlement date, $336,846,000 of the 5¾% notes and KZT 41,926,500,000 of the 10¾% notes will remain outstanding.

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 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.

Tenders may no longer be withdrawn.

The dollar offers will expire at 5 p.m. ET on April 30, and the tenge offer 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 closed on April 15, satisfying the tender offers’ financing condition. Proceeds from the new notes are expected to be used to fund the tender offers.

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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