/REUTERS, Almaty, Chris Baldwin, Daniel Basis, November 20, 06/ - The state agency, established for development of the regional financial center in Almaty, wants to buy 25 percent of shares in Kazakhstan stock exchange (KASE) for $4-5 m., said Arken Arystanov, the head of the agency, in the interview to Reuters.

"This will happen in the first half of 2007," said Arystanov, who together with other officials accompanies Nursultan Nazarbayev, the president of Kazakhstan, in London.

Currently the biggest shareholder of KASE is the National bank of Kazakhstan, which owns 12.4 percent of shares. The rest of shares are allotted among commercial banks and other market participants.

Arystanov also said that the agency reckons to treble the total capitalization of the exchange market from current $50 bn. in three years, attracting companies and investors from China, Russia, Ukraine and the Central Asia.

IPO OF HALYK BANK

Arystanov also said that the international public offering of shares of Halyk bank, the third biggest bank in the country, is expected at the beginning of next year.

The bank earlier informed that can conduct IPO, but did not specify its terms.

The biggest bank of Kazakhstan, Kazkommerts, in November borrowed about $845 m., having offered global depository receipts (GDR) on London stock exchange.

MONEY FOR ROAD

Another member of the Kazakhstan delegation Askar Sembin, the president of the state Bank of Kazakhstan development, told Reuters that the bank negotiates with private banks and international organizations about financing the project of construction of the new highway, which will connect the European part of Russia and China.

Project cost is $2 bn., the construction of the railway along the highway will cost another $500 m., development of transit junctions - $200-300 m.

The government does not want to finance the project from budget, despite the surplus of funds, said Sembin.

[2006-11-21]