Alliance Bank JSC (Kazakhstan) conducted the securitization of diversified payment rights for $200.0 m.

17.11.06 12:36
/KASE, November 17, 06/ - Alliance Bank JSC (Almaty), securities of which are traded in Kazakhstan stock exchange's category "A" official listing had spread today the press-release with the following contention: Quotation begin On November 13, 2006, JSC Alliance Bank successfully launched and priced a US$ 200 million, dual tranche debt issuance from a newly established future flow diversified payment rights securitization program. The issuance consisted of a US$ 100 million Series 2006A tranche and a US$ 100 million Series 2006B tranche. Both tranches have final maturities of 7 years. The most important aspect of this deal is that it opens up a potential new guarantor base to compete with financial monolines as the transaction is the first-ever DPR securitization to benefit from enhancement by a multilateral development bank, such as the Asian Development Bank (the "ADB"). The Series 2006A Notes are guaranteed by the ADB, which covers both interest and principal, and demonstrates the confidence of the ADB in the financial strength, credibility and exclusivity of Alliance Bank. The involvement of the ADB triggered a number of minor structural changes from the conventional DPR template, including the fixed rate format of the triple-A notes. As a result of this unprecedented development in the international debt markets, the Series 2006A Notes obtained the lowest ever margin for a transaction of this nature (15 bps (0.15%) over the relevant mid-swap rate, or Libor + 15 bps on a floating-rate equivalent basis). The Series 2006A and Series 2006B Notes have been assigned issue ratings of "AAA" and "BBB-" respectively by Fitch (BBB- is two notches higher than existing ratings of the Bank). As a result, the Alliance Bank was able to achieve a coupon of 5.1% for the Series 2006A Notes and Libor + 2% for the Series 2006B Notes The DPR securitization represents a great achievement for Alliance Bank with strong investor interest in the Notes. We had lead orders in both the 'A's and the 'B's, but good participation across both tranches. The order book for the Series 2006A Notes in particular was approximately four times oversubscribed. The transaction also serves to significantly diversify Alliance Bank's investor base, with the overwhelming majority of investors in the transaction being new investors for the Bank.. The program was structured by Merrill Lynch International ("Merrill Lynch") on a sole basis, and Merrill Lynch and HSBC Bank ("HSBC") acted as Joint Bookrunners and Joint Lead Managers for the issuance. The issuance is executed through Alliance DPR Company (the "Issuer"), which is a special- purpose company incorporated under the laws of the Cayman Islands.. The proceeds of the issue will be used to fund Alliance Bank's SME and retail lending. Alliance Bank is the fourth largest bank Kazakhstan by the size of assets and shareholders' equity. As of October 1, 2006 assets of the Bank totaled KZT667.7 bn. ($5.3 bn.)*, and shareholders' equity of the bank - KZT44.5 bn. ($350.1 m.)*. Alliance Bank is the absolute leader of crediting the physical persons in Kazakhstan. The size of credit portfolio of physical persons of Alliance Bank as of October 1, 2006 totaled KZT239.2 bn. ($1,880 m.)*, having increased 4.3 times since the beginning of the year. Alliance Bank (Kazakhstan) is a leading privately owned bank in Kazakhstan and is rated by Moody's Investors Service with Long-term 'Ba2', outlook is positive, Short-term 'NP' and financial strength rating of 'E+' with positive outlook and Fitch Ratings rates the Bank Long-term 'BB-', Short-term 'B' and Individual 'D' with stable outlook.. * Note: at the rate - KZT127.22 per $1 (official rate of National Bank of Republic of Kazakhstan as of October 1, 2006). This announcement appears as a matter of record only and is not, and should not be considered to be, a solicitation, offer or invitation in any jurisdiction to purchase or otherwise invest in any securities. Press-service of Alliance Bank JSC: +7(3272) 59 67 74, 58 40 40, internal. 1736, 1737 e-mail: Quotation end [2006-11-17]