Halyk savings bank of Kazakhstan JSC informed about opening of credit line to Rostovskiy electro-metallurgic plant LLC (Russia) for $150.885 m.

/KASE, June 15, 07/ - Halyk savings bank of Kazakhstan JSC (Almaty), securities of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list had spread the press-release with next contention: quotation begin June 14, Almaty. Today Halyk bank of Kazakhstan JSC, its daughter company HBK-Finance, Investment company MirInvest LLC and Rostovskiy electo-metallurgic plant LLC announced about starting of credit project - financing of building of modern electro-metallurgic plant in Shakhty city of Rostovskaya oblast (Russia) with power of 750 th. tons of liquid steel per year. The project stays in the last stage of construction: and already in the third quarter of year 2007 is planning the starting of steel-smelting production, and in second quarter of year 2008 is expecting the start of rolling mill. In the frames of the given project to the Borrower (Rostovskiy electro- metallurgic plant LLC) is opening the non-resuming credit line in size of $150.885 with term for 61 months. The originality of the give credit o the credit market of CIS is characterized by next terms: The plant borrowed from one bank the whole volume of financing, needed for finishing of building and refinancing of short-term debt to third creditors for long-term period. Among banks of CIS only singles may offer to one borrower such big limit of crediting on the long term basis, size of which depends on value of bank's shareholders equity. In the frames of the given credit project with objective of conduction of technical due diligence of the project was involved the leading western consulting company McLellan and Partners Ltd., which is specializing on consulting in metallurgic field and has the big work experience all over the world, including Russia. Juridical consultant of the project is juridical company Clifford Chance. "The given project - financing of building of modern metallurgic plant - may be related to project of high complexity", - had commented the deal Chairman of Board Marchenko G.A. - "As a rule, majority of credit projects, considering in Kazakhstan and Russian banks, are differing by low or middle level of complexity (development, retail activities and so on). Modern metallurgic plant, is not only the object of building of high complexity, but also the enterprise, activity of which is very hard to be forecasted due to majority of factors and uncertainties of macro and micro economical environment". Co-owner of the company Electro-steel of Russia (ESTAR) Varshavskiy V.E. explained: "We consider Halyk bank of Kazakhstan JSC as reliable and long-term partner on financial market and we are hoping for further cooperation. The provided loan is directing on financing of unique electro- metallurgic plant in Shakhty city of Rostovskaya oblast. Plant PEMP LLC with power 750,000 tons of liquid steel per year will become one of the first in Russia enterprise of new type, producing high qualitative products by technology of continuous pouring of steel". For reference: Halyk bank is one of the leading financial groups of Kazakhstan with the greatest clients' basis (total amount of retail clients of bank is more than 5.9 m. people, more than 63 th. clients of small and middle business and more than 300 big corporate clients). Bank is developing as universal financial group, providing the wide range of services (banking services, services of pension funds, insurance, leasing, broker services and assets management), to retail, corporate clients and clients of small and middle business (SMB). HBK-Finance is 100%-ge daughter company of Halyk bank of Kazakhstan. Company offers services for organization of debt financing of Russian companies - middle and long-term crediting, project financing and financing of fusion' and takeover' deals. Consolidated non-audited data of Halyk Group for Q1 of year 2007 by ISFR. As of April 1 of current year asset of the group made KZT979.9 bn. Size of liabilities was equal to about KZT844.5 bn., credit portfolio - KZT643.8 bn. Net income had reached KZT10.8 bn. with growth by KZT5.6 bn. or by 107% compared to Q1 of last year. Investment company MirInvest LLC is the consultant of Group of companies ESTAR in the area of financing borrowing. Group of companies ESTAR (Electro steel of Russia) was founded in year 2005 and joins 7 metallurgic enterprisers (Novosibirskiy zavod named after Kuzmin OJSC, Zlatoustovskiy metallurgic plant OJSC, Nytva OJSC (Nytvenskiy metallurgic plant), Volgogradskiy palnt of small diameter pipes LLC, Engelskiy pipes' plant CJSC, "Stalnoy profil" plant, building Rostovskiy electro-metallurgic plant), trade company Trade house Estar and scrap- preparing enterprise Lomprom. Holding controls about 14% of pipe market of Russia in its segment, 26% of Russian market of stainless and sorted steel, 76% of Russian market of accurate steel with special finishing of surface. Each plant of holding is unique, because is producing the high-liquid products, which not any enterprise in the country can make, and which as a rule have concrete, often very narrow sphere of application. Stability of market is caused by diversification of directions and union of enterprisers of the whole cycle of ready products' production. Strategy of group is to occupy the leading positions on the market of small and middle diameter pipes and on the market of special steels. Quotation end [2007-06-15]