General information on Bank TuranAlem OJSC as a guarantor of TuranAlem Finance euronotes

/IRBIS, July 18, 01/ - According to decision of the Board of Kazakhstan Stock Exchange (KASE) euronotes of TuranAlem Finance B.V. (Rotterdam) to be admitted into category "A" of the official listing of KASE from July 19, 2001. Euronotes are having following emission parameters: XS0131688227, $100m, June 28, 01-June 28, 04; semiannual coupon - 11.50% APR. The Notes are issued under complete guarantee of associated company Bank TuranAlem OJSC (Almaty). According to Securities Listing Regulation KASE applies all listing requirements to the associated company if it became a guarantor of bonds emission of the subsidiary, which is created as Special Purpose Vehicle. The guarantee of Bank TuranAlem OJSC #01/881 dated June 28, 2001 was registered by the banking Supervision Department of the National Bank of Kazakhstan on June 28 (#6993). The information below presents description of the Guarantor given by the Listing Commission. All responsibility for reliability of the submitted information falls on management of Bank TuranAlem OJSC and the financial consultant of TuranAlem Finance B.V. in Kazakhstan - TuranAlem Securities LLP (Almaty). HISTORY The bank was founded on Jan.15, 1997 in the form of closed joint-stock company as a result of restructuring of two banks: AB AlemBank Kazakhstan and KAB Turanbank. AB AlemBank Kazakhstan was founded in 1990 as Kazakhstan branch of Vnesheconombank (note: Vnesheconombank conducted international operations in former Soviet Union). The Alembank was an agent of the Government of Kazakhstan (GOK) servicing foreign credits under the government guarantee. KAB Turanbank began its activity in 1925 as a branch of Promstroibank (note: bank for industry and construction). It has been responsible for financing of construction and major industrial enterprises. Bank TuranAlem was actively supported by the GOK and National bank of Kazakhstan. GOK has paid $90 mln to the authorized capital. The rehabilitation bank repurchased liabilities of the predecessors for a total of $62 mln. As a result, the financial and economic conditions of the united bank has improved drastically. GENERAL INFORMATION Date of initial government registration - Jan.27, 1997. The legal status - open joint stock company. The ownership - private. Primary activity - banking services. Legal and actual address of the head office - 9 Zholdasbekov street, Samal-2, Almaty 480099, Kazakhstan. Bank TuranAlem OJSC has 23 regional branches, 222 cash desk offices throughout Kazakhstan. The number of employees as of Jan. 01, 2001 is 2,844, of which 1002 are in head office based in Almaty. The major activity of the bank is corporate banking operations, trade financing, retails services, operations with securities and foreign exchange, and rendering of broad set of the plastic card services. The bank has broad network of clients including many leading industrial enterprises. By late 2000 the bank had 29,000 corporate accounts (20.1% of the total corporate loan operations in Kazakhstan) and more than 400,000 personal accounts. The latter makes the bank second biggest financial institution in Kazakhstan after Halyk Bank in terms of personal deposits (25.7% of total volume). The bank does not participate in any of government programs (like a pensioning provision, etc.). At present, the bank has correspondent relations with 230 banks. Most active directions of relations are Germany, USA United Kingdom, Sweden, France, Austria, the Netherlands, Canada, Belgium and Italy. More than 110 banks of CIS countries opened LORO accounts in TuranAlem. Payments are made using SWIFT and TELEX international settlements systems. In late 1994, Bank TuranAlem started issuing and servicing of AlemCard. It also became a member of Visa International. At present, the bank issues and services full set of products of Visa International (Electron, Classic, Business, Gold). In January 1997, the bank signed an agreement with Europay International on issue of EuroСard/MasterCard and Cirrus/Maestro. In April 1997, agreements concluded with United Card Service on servicing of DinersClub and with American Express on distribution of American Express cards. As of Jan.01, 2001 Bank TuranAlem OJSC has maintained 46 ATMs. The bank considers debit and credit cards as one of the major source of growth of the retail sector operations. The bank opened its owned cards processing center and issued 152,709 debit including 85,782 international cards (VISA) and 33,456 own cards (AlemCard). According to 2001, number of cards could reach 186,700. In 2000 debit card activity brought KZT167m in revenues. Bank TuranAlem OJSC possesses stakes in: BTA Leasing OJSC - KZT142.8m (100% in the authorized capital), Pension Fund Kazakhstan CJSC - 104.5m (25.0%), TuranAlem Finance B.V. - 18 th. euros (100%); TuranAlem Securities LLP - KZT28.8m (100%), Pension Fund Kurmet CJSC - KZT42.7m (23.7%), Kazakhstan Stock Exchange (CJSC) - KZT3.3m (4.2%), OUL Association of Kazakhstan Financiers - KZT0.7m (17.1%), Interbank Financial Chamber JSCOT - KZT0.2m (6.3%), Central Depository of Securities - KZT0.2m (0.3%); BTA Insurance - KZT44.0m (40.0%). Bank TuranAlem OJSC is a member of KASE, Central Depository of Securities CJSC, Kazakhstan Fund of Individual Deposits Insurance CJSC (certificate 0000001 dated Feb.16, 2000), OUL Association of Kazakhstan Financiers. The bank is a primary dealer of the Finance Ministry of Kazakhstan (MOF) and primary agent of National Bank of Kazakhstan on the primary market of government bonds. The bank has participated in floatation of six issues of the national saving bonds (NSB) a financial agent of the MOF. Besides, Bank TuranAlem controls operations of Kazko Construction and Samal Properties. The latter manages and owns high-rise building Samal Towers - head office of the bank in Almaty. Samal Properties is 60% owned by Kazko Construction and 38% is owned by Alara International Inc, which is in turn owned by contractors initially by AB Alem Bank Kazakhstan. By the decision of NBK dated Oct.30, 1998 #220, Bank TuranAlem OJSC was included into the first group of banks to be shifted to international accounting standards. LICENSES - Of the National Bank of Kazakhstan to conduct banking operations in tenge and foreign currency, dated June 04, 2001 #242 (replaced old license #225 issued on Dec.17, 1998) with constant validity period. - Of the National Securities Commission of Kazakhstan to engage in broker and dealing activities on the securities market with the right to handle client accounts as a nominal holder, dated Aug.19, 1999, #0401100110 (instead of previous license #20030072 dated May 12, 1997), constant validity period. - Of the National Securities Commission of Kazakhstan to engage in custodian activities on the securities market #0407100023 dated Oct 15, 1998. CREDIT RATINGS Moody's: rating of long-term deposits in foreign exchange "Ba3", positive outlook, financial stability - D, stable outlook ; Standard & Poor's: long-term rating - B, stable outlook; short-term and deposits of certificates rating C, stable outlook.