Kazakhstan Mortgage Company plans to be the first to offer its securities on RFCA floor

/INTERFAX-KAZAKHSTAN, Almaty, December 12, 06/ - The state Kazakhstan mortgage company JSC (KMC) plans to be pioneer to offer its securities on the special trade floor of RFCA (Regional financial center of Almaty city). "We will come to RFCA floor for sure. We will break a new ground of RFCA with our company's bonds offering," the chairman of KMC JSC Azamat Ibadullaev said at the press briefing on Tuesday in Almaty. However, he finds to be difficult to determine the volume of the possible offering. "In average, the volume of offering of our company is about 5 bn tenge, but it will depend on the company's needs for that moment," he said. The efficient exchange rate is KZT128.02/$1. A. Ibadullaev informed that the state agency for the financial supervision had registered the next bonds program of the company for the term of 10 year for KZT30 bn, and it is expected to register one more bonds program for the total of KZT50 bn in the near future. The head of KMC JSC did not inform about terms of the first issue and its volume within the frameworks of the registered bonds program for the amount of KZT30 bn. "We are waiting as soon as our financial indicators call for additional investments, we will immediately bring bonds to the market," he only noted. In his opinion, it is expected to have a big demand of population for mortgage credits next year. "The 80-billion volume of the bonds programs planned to be offered is connected with our expectation to have a big number of newcomers for the mortgage credits, to say precisely, new loans will be executed within the state program of housing-building. We are preparing for this now," A. Ibadullaev said. As it is known, within the frameworks of three-year state program of housing-building, stipulated for years 2005-2007, it is planned to construct not less han 12 m square meters of housing. As of June 1, 2006 KMC registered fourteen mortgage bonds issues, seven of them are completely offered and two - entirely paid off. By the reporting date two bonds programs were registered for the total of KZT20 bn each. The head of KMC also informed that currently the share of the company in the mortgage crediting market made 35%, which would come down gradually. "We had the task to drive this market forward, but not to monopolize it. Seeing that, we are going to reduce the share of the company on the market. In 2001 we controlled 90% market of the mortgage crediting, we keep our share down little by little," he commented. According to his data, currently assets of KMC reached KZT70 bn, the net income made KZT950 m. "It happened for the first time we came close to KZT1 bn at estimation of our income. At that, we have already come over the plan according to this indicator by 40%. Noteworthy 60% profit is received from professional activity and 40% - from good offering of free finances," A. Ibadullaev said regarding the issue. As it was informed, the pioneer trades on the special floor of RFCA on the basis of Kazakhstan stock exchange will be held by the end of the current year. RFCA is founded as the singular zone with the special legal regime. At that, in difference from special economic zones, existing in the republic, RFCA will not have its own clearly defined territory. RFCA participants will follow the territoriality principle as the requirement to have the office in Almaty area. Kazakhstan Mortgage Company has been operating on the financial market of the republic since December 2000 within the frameworks of the state housing-building program. All shares of the company belong to the Ministry of finance of Kazakhstan. [2006-12-12]