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July 23, 2012

DBK has successfully issued a debut Islamic bond Sukuk

On 18 July 2012 JSC Development Bank of Kazakhstan (“DBK”), 100% owned by the Government of Kazakhstan through JSC Sovereign Wealth Fund “Samruk-Kazyna”, successfully priced its MYR 240 million offering of Malaysian Islamic notes with an annual profit payment of 5.50% and a 5-year maturity (the “Sukuk”). The offering of Sukuk was structured under the MYR 1.5 billion Islamic Medium Term Note Programme (“IMTN Programme”) under the Shariah principle of Murabahah. The IMTN Programme has been approved both by Bank Negara Malaysia and the Shariah Advisory Council of the Securities Commission of Malaysia during the 2nd quarter of 2012. 

 This groundbreaking transaction represents the first ever Sukuk issue out of the Commonwealth of Independent States (“CIS”). The transaction also represents the first issuer from the CIS region to tap the Malaysian market. Halyk Finance (Kazakhstan), AmInvestmentBank and Kuwait Finance House acted as the Joint Lead Managers while HSBC and The Royal Bank of Scotland acted as the coordinating Joint Lead Managers of the issue.

 Transaction terms:

Issuer:                    JSC Development Bank of Kazakhstan

Issuer Ratings:         AA2 by RAM Rating Services Berhad

                             BBB+ by Standard & Poors Rating Services

Security Description: Sukuk Commodity Murabaha

Tenor:                    5-year

Size:                       MYR 240 million

Re-offer yield:          5.50%

Coupon:                  5.50%  

Re-offer price:          100.00%

Listing                     Kazakhstan Stock Exchange

Minimum Denoms:     MYR 1,000

Applicable law:          Malaysian law

Joint Lead Managers: Halyk Finance (Kazakhstan), AmInvestmentBank and Kuwait Finance House

Сoordinating Joint

Lead Managers:         HSBC and RBS

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