Halyk Bank of Kazakhstan issues $16 mln in domestic bonds

/IRBIS, May 25, 00/ - According to the Almaty office of Reuters, Halyk Bank of Kazakhstan has signed an underwriting agreement with DB Securities Kazakhstan (a branch of Deutsche Bank AG) and CJSC "Fondovyi Servis," on floatation of 7 years maturity bonds of the Halyk Bank of Kazakhstan with $16 mln volume. The bank's press-release reports: "Considering an issue of increasing the bank's capital Halyk Bank of Kazakhstan decided to issue and float domestic subordinated debt on the sum of $16 mln with 7 years maturity period." According to the banking regulation of Kazakhstan, subordinated debt instruments are bonds with maturity 5 and more years. Considering this issue, the total shareholders' equity of the bank amounts to $53 mln. Forthcoming issue will be the first domestic loan bonds of Halyk Bank. The bank plans to float these securities among pension funds and other institutional investors. Halyk Bank is one of the biggest in Kazakhstan, its shares grew up by 43.9% and totaled KZT57.2 bln in the previous year. The bank's net profit increased by 14.1% and equals KZT630.4 mln. At the same time, considering the activity of filial companies, profit in the reported period was KZT746.4 mln. At April 26, Standard & Poor's has revised its rating outlook of Halyk Bank from negative to stable confirming all bank's ratings including credit ratings B/C.