ForteBank successfully issued eurobonds totaling 400 million US dollars with a maturity of 5 years, significantly exceeding the anticipated level of investor interest. International rating agencies assigned the following ratings to the issuance: Fitch (BB) / Moody’s (Ba3). The coupon rate for the issuance is 7.75%.
This issuance marks the first eurobond offering from Kazakhstani private banks in the past 12 years and is the debut issuance in the modern history of ForteBank. The eurobond issuance represents a significant step in the bank's strategy aimed at strengthening its position in international financial markets and expanding financing opportunities. The funds raised will be utilized for lending to the real sector of Kazakhstan's economy and supporting other strategic initiatives of the bank.
"The interest from international investors in our issuance exceeded all expectations. This achievement reflects the trust in Kazakhstan's banking system and the commitment to the country's economic course. The successful placement has demonstrated the high regard of the international financial community for our efforts in overcoming the effects of the banking crisis of 2007–2009 within the merged ForteBank. The bank will continue to show steady growth and adherence to high standards of financial transparency and reliability," noted Bulat Utemuratov, the main shareholder of ForteBank.
The book of applications for the bank's eurobond issuance attracted a large number of investors, reaching a peak of 800 million US dollars. Due to the high demand, the bank tightened pricing by 25 basis points from the initial price guidance. The size of the eurobond issuance was increased from the initially expected 300 million US dollars to 350 million US dollars, and then to 400 million US dollars, to meet the heightened demand from investors.
A total of 90 investors participated in the issuance, with the majority coming from the USA (34%), the UK (30%), and other European countries (25%).