By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 5 – JSC Development Bank of Kazakhstan priced two three-year notes (Baa2//BBB), one in dollars and one tenge-denominated, according to a multiple notices and information from a market source.
The bank sold $500 million of three-year senior 5½% notes at 99.727, or at Treasuries plus 109.2 basis points after price talk in the 5 7/8% area with guidance in the 5¾% area.
Additionally, the bank sold KZT 100 billion of three-year senior sustainability fixed rate notes at 99.397. Price talk on the tenge-denominated bonds is coming in at the 13¼%-13½% area.
J.P. Morgan plc, Citibank, Halyk Finance, Mashreq and Societe Generale are the bookrunners.
J.P. Morgan is the development finance structuring agent, and Citibank serves as the sole sustainability structuring bank.
The Rule 144A and Regulation S offerings are expected to close on or around April 15.
As previously reported, proceeds from the new notes are expected to be used for general corporate purposes and to fund tender offers for up to $500 million of the bank’s existing 5¾% bonds due 2025 (ISIN: XS2472852610, US48129VAA44) and up to KZT 62.5 billion of its existing 10¾% bonds due 2025 (ISIN: XS2106835262). The bank intends to use cash on hand to fund any remaining portion of the tender offers, which launched April 2.
An amount equal to the proceeds from the new tenge-denominated notes will be used in accordance with the company’s green and sustainability financing framework.
The notes will be listed in Vienna and in Kazakhstan.
The bank is based in Astana, Kazakhstan.
| Issuer: | JSC Development Bank of Kazakhstan
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| Issue: | Notes
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| Bookrunners: | J.P. Morgan plc, Citibank, Halyk Finance, Mashreq and Societe Generale
|
| Sustainability structurer: | Citibank
|
| Second party opinion: | Sustainable Fitch and AIFC Green Finance Centre
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| Ratings: | Moody’s: Baa2
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| Fitch: BBB
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| Trade date: | April 4
|
| Settlement date: | April 15
|
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|
| Dollar notes
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| Amount: | $500 million
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| Maturity: | April 15, 2027
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| Coupon: | 5½%
|
| Price: | 99.727
|
| Spread: | Treasuries plus 109.2 bps
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| Price talk: | 5 7/8% area with guidance at 5¾% area
|
| Distribution: | Rule 144A and Regulation S
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|
|
| Tenge notes
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| Amount: | KZT 100 billion
|
| Price: | 99.397
|
| Price talk: | 13¼%-13½% area
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