Kazkommertsbank acted as the organizer of 4 loans for purchase of agricultural equipment John Deere under the guarantee of Eximbank of USA

/Kazkommertsbank JSC, June 1, 05/ - Since the beginning of 2005 Kazkommertsbank (KKB) has funded several big agricultural projects in Kazakhstan for a total of over USD16 m. Loans were organized and given by the bank for purchasing large-scale agricultural equipment John Deere (USA) under the guarantee of Export-import bank of USA. Among borrowers there were Grain leasing company LLP Atyn Biday 2000 LLP and Tukym LLP, average term of a loan was 5 years. It's notable that Eximbank of USA approved the guarantee on one of above- mentioned export deals for 6 years, whereas according to normal practice term of agricultural equipment funding under the guarantee of Eximbank of USA is 5 years. These loans were organized jointly with Deere Credit Inc. (USA), a subsidiary financial company of John Deere Company, for expansion and increasing of possibilities of Kazakhstan's agricultural producers while getting a funding for importing equipment from the USA, Andrey Timchenko managing director of KKB said. "Eximbank of USA is a trustworthy state financial institution of the USA, which secures political and commercial risks of American investors for long- term funding of goods export from the USA. This cooperation gives to KKB good possibilities for crediting clients", - Timchenko said. Terms of funding on Eximbank's guarantee are very profitable for clients as well as in the view of terms and cost of funding. Taking into account good well arranged relations with American, European and other foreign banks, and also presence of experience on organization of funding under the guarantee of Export-credit agencies (ECA) and Eximbanks KKB can organize funding of export from the whole world under the guarantee of ECA. Besides, taking into account active demand of Kazakhstan's importers for goods of German and Italian producers, Kazkommertsbank can offer funding within the set limit of Euler Hermes (German ECA) and SACE (Italian ECA) without a long examination and approval of credit by the mentioned ECA. John Deere Company is the world corporation, the biggest producer of high-quality agricultural equipment, building equipment and equipment for forestry. Eximbank of USA is an official export-credit agency of the USA, which aims for rendering financial support of export of American goods and services to international markets. The bank does not compete with private creditors, but on the contrary, assumes credit and country risks, which private creditors can not or do not want to assume. Kazkommertsbank is Kazakhstan's biggest bank by the size of assets and equity capital. According to bank's non-consolidated financial statement its assets as of May 1 of 2005 had grown to KZT685.721 bn. (compared to KZT469.013 bn. as of May 1 of 2004); loan portfolio reached KZT521.887 bn. compared to KZT321.885 bn. (as of May 1, 2004). Bank's profit grew to KZT8.264 bn. from KZT2.879 bn. Equity capital exceeded KZT65.425 bn. (as of May 1, 2004 - KZT48.136 bn.). [2005-06-02]