/KAZKOMMERTSBANK, December 19, 02/ - Kazkommertsbank is pleased to inform that on December 19 of 2002 it signed agreement about prolonging of Term Loan dated December 20 of 2001 between Kazkommertsbank and syndicate of international banks for more 12 months. Sum of the agreeement has been increased from 100 to 150 m US dollars, whereas the margin on credit facility has been decreased on 50 basis points from 2.75% to 2.25% p.a. over 6- month LIBOR.

The loan has been borrowed for purposes, which were connected with trade that will promote to supplying foodstuff and equipment for food and light industry, medicaments to the country, and also to the export of metals, balsam wool, grain crop and other goods. Kazkommertsbank remains the only bank in Kazakhstan, which has borrowed the largest syndicate and with the lowest cost of borrowing that is considered by investors as a new qualified level for Kazakhstan banking sector in borrowing finance at international markets of capital.

It was not the bank's purpose to increase the sum of borrowing, however interest of the syndicate's participants in the deal exceeded all expectations, at that, new foreign banks, which had never worked at Kazakhstan market, joined the syndicate with rather large market share.

Deutsche Bank AG London has received mandate for organization of the Credit, the group of Organizers comprised syndicate of banks consisting of ING Bank N.V., Piraeus Bank S.A. and London Branch GARANTI BANK INTERNATIONAL N.V). The group of lead managers participating in the syndicate included American Express Bank GmbH, Bank Sepah International Plc, Bankgesellschaft Berlin AG, Commerzbank (Eurasija) SAO Moscow, (HVB Group) Bayerische Hypo-und-Vereinsbank AG (5mn), Bank Austria Creditanstalt AG (1mn), International Moscow Bank, Moscow, JP Morgan Chase Bank, Kuwait Investment Company (S.A.K.), Landesbank Rheinland Pfalz-Girozentrale, Mashreqbank psc, National Bank of Pakistan, New York, Raiffeisen Zentralbank Oesterreich AG, Wachovia Bank, National Association, ABN AMRO Bank Kazakhstan, while Bank Leumi Le-Israel B.M., Erste Bank der Oesterreichischen Sparkassen AG, Israel Discount Bank of New York, Natexis Banques Populaires, Sumitomo Mitsui Banking Corporation, The Bank of New York, Bank Melli Plc were managers of the Credit.

Successful rollover of the syndicated facility demonstrated positive fundamental changes taking place in Kazakhstan as well as growing credibility, strong market position and international reputation of Kazkommertsbank as the largest and the most reliable borrower in the region.

Reference information:

Kazkommertsbank is the largest Kazakhstan bank. Its assets, which were confirmed by auditing company Deloitte&Touche as of June 30 of 2002, were equal to USD1.402 bn, and the size of shareholders' equity and net profit - 180.1 m and 23.1 m US dollars correspondingly.

[2002-12-19]