ForteBank Places $400M Eurobonds

ForteBank has successfully placed $400 million in Eurobonds with a 5-year term, Orda reports.

Investor interest proved much higher than expected. International rating agencies assigned the following ratings to the issue: Fitch (BB) / Moody's (Ba3). The coupon rate is 7.75%.

This placement became the first Eurobond issue from Kazakhstani private banks in the last 12 years and ForteBank's debut issue in its modern history.

The company noted that the Eurobond placement is a significant step in the bank's strategy, strengthening its position in international financial markets and expanding financing opportunities.

The funds raised will be used to lend to Kazakhstan's real economy sector and support other bank strategic initiatives.

International investor interest in our placement exceeded all expectations. This achievement demonstrates confidence in Kazakhstan's banking system and the correctness of the country's economic course. The successful placement became an indicator of the international financial community's high assessment of our work in overcoming the consequences of the 2007-2009 banking crisis in the unified ForteBank. The bank will continue to demonstrate steady growth and commitment to high standards of financial transparency and reliability, noted Bulat Utemuratov, the major shareholder of ForteBank.

The bank's Eurobond order book attracted many, reaching a peak of $800 million.

Due to high demand, the bank tightened pricing by 25 basis points from initial price guidance. The Eurobond issue size was increased from the initially expected $300 million to $350 million and then to $400 million to meet increased investor demand.

In total, 90 investors participated in the placement, with the majority coming from the USA (34%), the UK (30%), and other European countries (25%).

Original Author: Mariya Kravtsova