Jsc Halyk Reg S Regulatory News (HSBK)

15 May 2007 10:23

JSC Halyk Savings Bank Kazakhstan15 May 2007 US$ 700 million Notes due 2017 and US$400 million syndicated loan JSC Halyk Bank Kazakhstan ("the Bank") is pleased to announce the results of thefollowing transactions: Eurobond issue. On 3 May 2007 the Bank's special purpose vehicle subsidiary,HSBK (Europe) B.V. successfully placed 10-year Eurobonds for the principalamount of US$ 700 mln. fully guaranteed by the Bank. The placement followed anintensive 4-day roadshow in New York, Boston, Los Angeles, London, Frankfurt andGeneva. Due to the significant interest in the paper it finally priced at MS+220which was at the tighter end of the initial guidance of MS220-230. The deal sizeof US$ 700 mln. was at the upper end of initial guidance of US$500-700 mln., andis the largest senior Eurobond deal for the Bank. The joint lead managers wereCitigroup and Dresdner Kleinwort. The benchmark deal was priced at 99.168% andbears a yield for investors of 7.369% paying a beneficial coupon of 7.250%.Despite very tight pricing the transaction generated strong interest frominvestors attracting approximately US$ 1,500 mln. in demand from over 100investors, with a large participation of US institutional accounts. Geographicaldistribution includes the US - over 40%, Europe and UK - over 45% and Asia -over 10%.Good distribution was also achieved by investor type with solidparticipation of asset managers. The notes were assigned the following ratings:Baa2 (Moody's Investors Service), BB+ (Standard&Poor's) and BB+ (Fitch Ratings). Syndicated loan. On 18 April 2007 HSBK (Europe) B.V. entered into asyndicated loan facility agreement for the principal amount of US$ 400 mln. witha 2-year tenor with extension option for one year fully guaranteed by the Bank.The benchmark loan bears a margin of 30 bps over LIBOR for the first 2 yearswith a step-up margin of 70 bps for the third year. Due to the strong interestfrom banks and oversubscription in the order book, the initial guidance of US$300 mln. was increased to US$ 400 mln. despite a relatively tight pricing. Thefunds will be used for general corporate purposes of the Bank, including tradefinance operations. The lead arrangers and bookrunners of the deal were CitibankN.A., London and Unicredit Group. 26 foreign banks and financial institutions,including the lead arrangers, from 13 countries participated in the syndication. Contact details Dauren Karabayev (daurenk@halykbank.kz) 007 327 259 88 66 Assel Atinova (asela@halykbank.kz) 007 327 259 04 30 This information is provided by RNS The company news service from the London Stock Exchange