Development Bank of Kazakhstan gives early results of capped offer for 4 1/8% notes

By Wendy Van Sickle

Columbus, Ohio, May 11 – JSC Development Bank of Kazakhstan announced it received tenders of $791,876,000 notes by the early deadline of its offer to purchase for cash up to $700 million of its $1,264,004,000 outstanding 4 1/8% notes due 2022 (ISIN: XS0860582435, US25159XAB91), according to a press release.

Because the offer was oversubscribed by the early deadline, 5 p.m. ET on May 9, all early tenders of priority notes will be accepted and other early tenders will be accepted at a proration factor of 85.9677% to match the $700 million cap, the issuer reported.

The offer began on April 26 and will expire at 11:59 p.m. ET on May 23.

The bank offered a total consideration of $1,001.50 per $1,000 principal amount of notes tendered by the early tender participation deadline. The total consideration includes an early tender premium of $30 per $1,000 of notes.

In addition, the company will also pay accrued interest to but excluding the applicable settlement date. Early settlement is expected on May 12, after which $564,004,000 of the notes will remain outstanding.

The bank said it made the tender offer, in combination with an offering of dollar-denominated eurobonds to be issued under its medium-term note program, as a way to manage its financial liabilities and debt maturity profile.

Proceeds from the new notes are expected to be used to partially fund the tender offer. Existing cash on hand will be used to fund the remaining portion of the tender offer.

The tender offer is conditioned on, among other things, completion of the new notes offering.

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) and MUFG Securities EMEA plc (+44 20 7577 2766, liability.management@mufgsecurities.com) are dealer managers for the tender offer.

Kroll Issuer Services Ltd. (+44 20 7704 0880 or by e-mail at: dbk@is.kroll.com) is information and tender agent.

The bank is based in Nur-Sultan, Kazakhstan.

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