Development Bank of Kazakhstan gives final results of tender offer

By Marisa Wong

Los Angeles, May 1 – JSC Development Bank of Kazakhstan announced the final results of its April 2 tender 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 expiration of each offer, holders had tendered $1.1 million of additional dollar notes and KZT 41,926,500,000 of additional tenge notes since the early tender participation deadline of each offer. The dollar offer expired at 5 p.m. ET on April 30, and the tenge offer expired at 11 a.m. ET on April 30.

As previously reported, holders had tendered $163,154,000 of the dollar notes and KZT 20,573,500,000 of the tenge notes as of the early tender participation deadline, which 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 accepted all of the early tendered notes for purchase on April 17. Payment for the tenge notes was made in dollars at an exchange rate of KZT 446.91 per $1.00.

The issuer intends to accept all of the additional tendered dollar notes for purchase on May 2. After settlement, $335,746,000 of the dollar notes will remain outstanding.

On the other hand, the issuer has not accepted any additional tenge notes for purchase. As a result, the remaining outstanding principal amount of the tenge notes is KZT 41,926,500,000.

For the dollar notes, the issuer offered a tender offer consideration of $1,000 per $1,000 principal amount. The total consideration included an early tender premium of $30 per $1,000 of notes tendered by the early participation deadline. Holders who tendered 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 offered a total consideration of KZT 245,000 per KZT 250,000 principal amount. The total consideration included an early tender premium of KZT 7,500 per KZT 250,000 of notes tendered by the early participation deadline.

The issuer also paid or will also pay accrued interest.

The issuer made 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 were partially 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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