KMC completed the deal of borrowing $100 m. from Credit Swiss and does not leave out the possibility of issuing eurobonds in 2008

/INTERFAX-KAZAKHSTAN, Astana, December 11, 07/ - State Kazakhstan Mortgage Company JSC (EMC) and Credit Swiss have concluded the agreement on providing KMC with preferential unsecured loan in the amount of $100 m., the vice-minister of finance Daulet Ergojin informed Interfax- Kazakhstan agency. "$100 m. will be on Kazakhstan's accounts during the week", - he said, adding that KMC borrows this loan at the rate "below than 7.5% APR". "This kind of loan and borrowing money on preferential conditions without a collateral is a recognition of impeccability of Kazakhstan financial system", - D. Ergojin emphasized. At the same time, as the Chairman of Board of KMC JSC Azamat Ibadullaev announced on press conference in press center of Interfax-Kazakhstan agency on Tuesday in Almaty, the loan was provided at the rate of libor+2.52% APR for seven-year term with grace period of three years. "That is, the final rate for us totaled 7.4% APR", - clarified A. Ibadullaev. According to his information, the main volume of this money will be transferred before the end of current year. "65 million dollars will be received this week, 20 million dollars - before the end of this year, and 15 million dollars - as needed in the next year: I think it will be January-February", - said the head of KMC JSC. At that, he underlined that this unsecured loan is borrowed without state guarantees. "The loan is unsecured, there are no state guarantees", - he said. "We will allocate the raised money on refinancing a range of long term instruments, issued in previous years", - A. Ibadullaev informed. Furthermore, speaking about the plans of foreign borrowings on 2008, A. Ibadullaev did not leave out the possibilities of issuing eurobonds. According to him, when taking such decision, the company will proceed first from the situation on mortgage market of Kazakhstan. "I think the situation would have cleared up by March. Then, probably, we would go for selection of an investment bank to issue our debut securities, in the first place, eurobonds", - he said. However, the head of the company did not exclude that it may be other instruments. At that, he emphasized that it may be crediting markets of both Europe, and Asia. In general, the head of KMC informed that the volume of foreign borrowings for 2008 would not exceed $200m. KMC is working on financial market of republic since December 2000 in the frames of realization of state habitation program. Main directions of activities of KMC are purchasing of requirement rights on long term mortgage habitation loans, given by banks, and also borrowing of long term resources for mortgage crediting, including by issuing of own mortgage securities. Shareholder of company is government in face of Ministry of finance. [2007-12-11]