LONDON : State-owned Development Bank of JSC is hoping to close a dollar-bond sale on Thursday, testing markets with the first debt issuance in the Commonwealth of Independent States region since Russia's invasion of Ukraine.
The investment-grade rated bank aims to issue $500 million of three year dollar-denominated bonds with a final price guidance of 5.95 per cent, according to a bank involved in the deal. DBK is selling the bonds in conjunction with a tender offer on its existing notes maturing in December which were quoted with a bid yield of just under 5 per cent, according to Refintiv data.
Russia has been severed from global financial markets since launching its war on Feb. 24 with bond issuance in the region grinding to an abrupt halt. Russian corporates - many of them state-run and in the energy and financial sectors - had been prolific issuers in the run up to the war, and set the tone for much of the issuance in the region.
Kroll Issuer Services Limited is the tender agent while JPMorgan Kazakhstan Securities PLC, Citigroup Global Markets Limited, JSC Halyk Finance and MUFG Securities EMA Plc are the joint dealer managers, according to a statement by one of the banks.