Development Bank of Kazakhstan initiates cash tender offer

ALMATY - JSC Development Bank of Kazakhstan has launched a tender offer to purchase for cash any and all of its outstanding 5.75% notes due in 2025. The offer, announced on March 25, 2025, is subject to terms and conditions detailed in the offer to purchase document provided by the bank.

The tender offer is being conducted alongside a new offering of U.S. Dollar-denominated Eurobonds and Kazakhstan Tenge-denominated Eurobonds under the bank’s medium-term note program. The proceeds from the new U.S. Dollar notes, expected to close around April 7, 2025, are intended to fund the tender offer, contingent upon the successful completion of the new notes offering.

Holders of the 5.75% notes due 2025 are eligible to tender their notes until the expiration deadline of 5:00 p.m., New York City time, on April 22, 2025. An early tender premium of $30.00 per $1,000 in principal amount is included in the total consideration for holders who tender their notes by the early deadline of 5:00 p.m., New York City time, on April 7, 2025. Notes tendered after the early participation deadline but before the expiration deadline will receive only the tender offer consideration, which is the total consideration minus the early tender premium.

In addition to the tender offer consideration, holders whose notes are accepted for purchase will receive accrued and unpaid interest in cash from the last interest payment date up to, but not including, the early settlement date or the final settlement date, as applicable. The early settlement date is expected to be on April 9, 2025, and the final settlement date is anticipated to be on April 24, 2025.

The bank has retained Citigroup (NYSE:C) Global Markets Limited, JSC Halyk Finance, J.P. Morgan Securities plc, and Société Générale (EPA:SOGN) as dealer managers for the tender offer. Sodali & Co Ltd. has been appointed as the information and tender agent.

Holders are advised to carefully review the offer to purchase and consult with their investment and tax advisors. The bank has not made any recommendations to holders regarding their participation in the tender offer.

This tender offer announcement is based on a press release statement and is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security. The offer is subject to restrictions in certain jurisdictions and is not being made to the public in jurisdictions where such an offer would be unlawful.

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