International Markets See Issuance of Dollar and Tenge Eurobonds by the Development Bank of Kazakhstan
The Development Bank of Kazakhstan (DBK) has successfully placed two tranches of Eurobonds on international capital markets, aiming to finance key projects in the renewable energy, infrastructure, and manufacturing sectors. The announcement was made in a press release issued on July 3.
The first tranche, a $200 million tap of its April-issued dollar bonds, matures in April 2030, with a 5.625% coupon. The second tranche, denominated in Kazakh tenge, raised 55 billion tenge (US$106 million) and has a three-year maturity, although the exact yield for both tranches was not disclosed.
The dollar bonds attracted strong interest from global investors, particularly in the United Kingdom, Europe, and Kazakhstan, with a wide range of investors participating, including 32% from Kazakhstan, 31% from the United States, 14% from the Middle East, 11% from the United Kingdom, and 12% from Europe.
Marat Yelibayev, Chairman of the Development Bank of Kazakhstan, stated that these placements are an important step in strengthening the bank's presence on international capital markets. He also mentioned that the bank managed to attract financing on attractive terms, fixing the yield on dollar-denominated bonds below the initial issue level by 13.8 basis points.
The DBK has a history of financing significant projects, such as the Khromtau wind power plant (150 MW capacity), under Kazakhstan Electrolysis Plant JSC, which exemplifies DBK’s investments in renewable energy. The bank also supports infrastructure projects, including transport and energy sector developments, and manufacturing projects, such as the modernization of the Shymkent oil refinery and production facilities for KAZ Minerals Aktogay LLP.
The bank collaborates with the China Development Bank, with a general agreement for up to $1 billion funding to support investment projects across manufacturing, energy, infrastructure, agribusiness, and other sectors in Kazakhstan. This ongoing commitment to financing transformative projects aligns with the country’s economic diversification and sustainability goals.
In summary, the proceeds from the recent Eurobond placements will be used primarily to finance projects in renewable energy, infrastructure development, and manufacturing modernization and expansion. This aligns with DBK’s strategy of diversifying funding sources and strengthening international market presence while supporting Kazakhstan’s non-resource economic sectors.
The Development Bank of Kazakhstan (DBK) raised funds through the international capital markets to finance key projects, with a focus on renewable energy, infrastructure, and manufacturing sectors. Marat Yelibayev, Chairman of the DBK, emphasized that these placements strengthen the bank's presence on international markets and that they managed to attract financing on attractive terms.
