Fitch assigns Development Bank of Kazakhstan's Islamic finance programme

Aug 22 - Fitch Ratings has assigned the Development Bank of Kazakhstan's (DBK) Islamic Medium Term Note Programme, which has a total value of up to 1.5bn Malaysian Ringgits (RM) (about USD479m), a final rating of 'BBB-'. The agency has also assigned a 'BBB-' rating to the debut five-year RM240m issue of sukuk (Islamic bonds) under the programme.

The final ratings follow the receipt of documents conforming to information previously received by Fitch and completion of the first series of sukuk issuance under the programme. The programme's final rating is the same as the expected rating assigned in June (see 'Fitch Rates Development Bank of Kazakhstan's RM1.5bn Islamic Medium Term Note Programme 'BBB-(exp)', dated 22 June 2012 at www.fitchratings.com).

The RM240m sukuk issue's rating reflects the programme's rating. The notes are due on 3 August 2017 and carry a 'profit payment' at a rate of 5.5% payable semi-annually.

DBK is wholly owned by the government of Kazakhstan ('BBB'/Positive) through the National Welfare Fund Samruk Kazyna. The bank's primary role is to foster development of the country's non-extracting sectors.

(Reuters / 22 August 2012)

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