“Development Bank of Kazakhstan” JSC (hereinafter referred to as the DBK, Bank) has partially repurchased Eurobonds of the sixth emission to the total nominal value of $160,996,000. Discount to the nominal price of bonds was 3.5%.
DBK announced about the intention to repurchase Eurobonds of this emission to the amount of up to $200,000,000 on November 28 current year. On December 13, the Bank carried out make settlement payments with investors.
DBK issued Eurobonds on December 10, 2012, in amount of $1,425 bln., with the maturity of bonds of up to 2022 and coupon rate of 4.125% per annum.
Transaction on preschedule partial repurchase of debt securities was structured within the frameworks of the tender of European type being opened only for Regs bonds holders. In opinion of Botagoz Abisheva, the Director of DBK’s Funding and Investor Relations Department, the repurchase of bonds was successful, taking into account the following factors:
1. About 50% of issued bonds were not involved in tender (144А).
2. OPEC’s decision about the reduction in crude oil production in two days after the call for tender put pressure on prices at secondary market.
3. Unwillingness of investors to sell high yielding bonds of quasi-public sector of Kazakhstan, as well as lack of assets in the market which could replace these Eurobonds.