BTA Bank (Kazakhstan) comments on state buying stake at bank

/KASE, November 10, 08/ - BTA Bank (Almaty), securities of which are traded in the official list of Kazakhstan Stock Exchange (KASE), provided KASE with the press release: Quotation start Purposes of State fund SamrykKazyna buying a stake at BTA Bank The Government of the Republic of Kazakhstan jointly with the National Bank and AFS made a proposal on implementation of measures intended to preserve and further increase volumes of crediting of real economy sector and population. Within the frames of this program BTA Bank considers an opportunity to use state funds in the amount of USD2.3 bn. through issue of common shares in the amount not exceeding 25 % of bank equity capital, preferred shares and subordinated bonds. This sum indicates the volume of funds, which BTA Bank will be able to accept and use effectively. BTA Bank has a strong deposit base and sufficient liquidity, necessary to fully meet its obligations before clients and foreign investors. With attracted state funds BTA Bank will be able to gradually replace the resources, raised from abroad, with that, enlarging total volumes of crediting of Kazakhstan economy and population, even under conditions of closed external borrowing markets. Even amid crisis through 2008 BTA Bank is growing drastically confirming success of the strategy selected. Thus, BTA Bank assets in first 9 months of 2008 grew 16.9 %, attracted term deposits of clients rose 41.1 %. In addition it is worthwhile mentioning that increase of bank capitalization will be positively valuated by rating agencies, investment community and bank customers, which may increase potentials of fundraising, and, therefore, boost crediting volumes. No prejudice of current shareholder rights through attraction of additional capital from the state A state fund participating in additional BTA Bank share emission will prejudice no rights of current shareholders. The state will buy shares through Fund of national welfare SamrukKazyna in accordance with the current legislation, that is, with respect to all rights of current shareholders, which will be granted a preemptive right on purchase of additional emission shares. The state will buy additional share emissions through Fund of national Welfare SamrukKazyan only, if current shareholders refuse to purchase shares. The decision on additional share emissions will be made by meetings of shareholders of the bank in accordance with the Law "On Joint-Stock Companies". Terms of state financing Final terms of the state fund becoming a shareholder of the bank will be determined in the course of talks; however, the following key points have been agreed: - capitalization will be realized through purchase of additional emission of common and preferred shares (first level capital), and issue of subordinated bonds (second level capital); - state fund stake will not exceed 25 % of voting stock; - state fund is not to influence on current operational operation of the bank; - the decision to support the Bank through purchase of additional share emissions and subordinated bonds is deemed by the government as callable investment: bonds will be issued for a limited term and percent, specified by an agreement between investor (state) and issuer (bank). On maturity, banks will redeem subordinated bonds, that is, the state in person of State of national welfare SamrukKazyna will receive the main debt sum and percent on bonds; - The state will sell its stake in banks as the situation stabilizes and global financial crisis is over. Opening of new capital markets for Kazakhstan issuers, stable situation in banking sector and possibility of sale of packages on the organized markets (exchanges) will indicate the moment the state may sell its stake. At that, private shareholders of banks will be able to acquire shares, belonging to the state, on an agreed price at market terms. BTA final objective and future plans BTA Bank is planning to implement its strategy, directed on building of large international financial group. In accordance with its strategy BTA Bank intends to preserve and strengthen leading positions on the Kazakhstan market and improve its performance on other markets, where BTA Group is represented with subsidiaries and partner-banks. Contact Media: Adyl Dossymov, BTA Bank Press Secretary 8 (727) 266 47 97, E-mail: dosymov@bta.kz Quotation end [2008-11-10]