KAZKOMMERTSBANK OJSC shareholders decided to open subsidiaries and increase liabilities in 2001

/IRBIS, July 20, 01/ - Submitted to IRBIS bank press-release states that KAZKOMMERTSBANK OJSC (Almaty hereinafter Kazkommertsbank) shareholders at general meeting decided to increase volume of bank liabilities in 2001 and open subsidiary banks and also preferred shares issue and this would accelerate bank development, strengthening of its positions in bank sector as well as in financial market. Kazkommertsbank plans to arrange range of bond loans in order to attract financial resources at foreign as well as at domestic capital markets. Due to this $500m size of liabilities volume was set for year 2001. Under the decree of shareholders Kazkommertsbank is able to issue coupon bonds until April 2002 amounting $500m with not less than 5-7 years circulating term. Bank does not exclude euronotes issue at volume of $150-200m if world market conditions will be positive for floatation. Kazkommertsbank was the first Kazakhstani financial institute which in 1998 attracted $100m through three years euronotes floatation of subsidiary KAZKOMMERTS INTERNATIONAL B.V. (Rotterdam, the Netherlands). In May 2001 securities were successfully repaid. Now bank plans to attract long term means to finance small and middle business. Today there are bank bonds of two issues: domestic coupon inscribed bonds(KZ72KA7B9A11; KASE official listing "А" category; KKGBb; $30,0 m; $100; Sept 06. 99 - Sept 06. 01; semiannual coupon 10,0% APR) and first issue sub ordered notes (XS0122349615, official listing KASE "А" category, KKGBe2; $1000; $20 m; Dec 22. 00 - Dec 22. 07; semiannual coupon 11,0% APR). Kazkommertsbank and its shareholders approved suggestion to issue non voting preferred shares totally not exceeding 25% of bank authorized capital in order to increase volume of proper capital. Preferred shares are to be offered in free sale with fixed dollar dividend size. More accurate issue parameters including terms will be approved later by bank Board of directors. Bank shareholders agreed to open subsidiaries in Russia, Belarus and Uzbekistan. Board of directors will determine date terms of opening. Kazkommertsbank has already been consulted by Centerbank of Russia and prepares all indispensable documents. These solutions reflect promotion of bank to foreign market and mean activation of strategically line of Kazkommertsbank development. On July 01 of this year the announced authorized capital of Kazkommertsbank totaled KZT2,942,200,690.00 or $20.0m. At the end of first six months proper capital increased by 22.8% and totaled KZT17.1bn or $115.9 relative to the same period of last year. Its assets increased in 2.2 times up to KZT158.3m or $1.081bn that is 25% of total Kazakhstani banks assets. KAZKOMMERTSBANK OJSC has credit ratings Ba3/B/B+ from Moody's, S&P и Fitch respectively. According to shareholders list on January 01, 2001 there were 21 shareholders including 19 physical and 2 legal entities. Central-Asia Investment Company (Almaty, Kazakhstan authorized capital portion at 35.81%); The Bank of New York (USA, New York, nominal holding at 32.09%); Kazkommertsbank Securities OJSC (Almaty, Kazakhstan nominal holding at 22.48%) all of them hold authorized capital portion exceeding 5%. The portion of other shareholders is at 9.26% of authorized capital.