Bank TuranAlem OJSC (Kazakhstan) officially informed about increasing of its capital by $29m through floatation of sixth issue shares among largest international financial institutions

/KASE, Dec 14, 01/ - Today Bank TuranAlem OJSC (Almaty) shares and bonds of which are traded at Kazakhstan stock exchange (KASE) under highest category of the official list held a presentation of floatation of sixth issue shares among five largest international financial institutions - EBRD, IFC, DEG, FMO, RZB. The floatation was closed and completed on November 29,2001 (for this date all money for shares were received on bank accounts), As a result authorized capital of the bank increased by USD29m. Organizer of the deal and structuring agent was International Finance Corporation. According to bank's information, this is a first floatation of shares of corporate issuer from CIS after Russian crisis of 1998. Based on presented documents, the sixth issue consists of only 426,722 convertible preferred inscribed shares without voting right at KZT10,000 each amounting to KZT4,267,220 th. with the announced authorized capital of KZT17,137,450 th. The preferred shares of the sixth issue were assigned a national identification number KZ1P34920614. The issue was conducted in non-documentary form. The issue has been entered into the State register of the securities under the number A3492-5. Based on the charter of the bank and the issue prospectus the minimum dividends to preferred shares were set at 10.25% APR of the face value, which do not include income tax (net). The state registration certificate reads that when conversion of the preferred inscribed shares without voting rights into common inscribed shares the national identification number, assigned to preferred inscribed shares without the voting rights, will be changed into the national identification number of the common inscribed shares - KZT1C34920013. Based on the decision made at the general shareholders meeting of Bank TuranAlem OJSC on June 11, 2001, preferred shares will be floated privately (among predefined individuals). Following terms of conversion are set in the issue prospectus of the shares. - During conversion one preferred inscribed share should be converted into one common inscribed share. As a result of the conversion total proportion of each holder of the convertible preferred inscribed shares in the paid authorized capital of the bank, who is executing their conversion rights, should be equal to his/her stake in paid authorized capital prior to the conversion, specified in the changes and amendments made to the charter of the bank. - The right to convert convertible preferred shares into common shares is executed by the holders of convertible preferred shares during the period not earlier than May 1, 2002 and not later than May 1, 2006 (conversion period). Each calendar year that is within the conversion period is called a conversion year. - Conversion right can be executed by each holder of convertible preferred shares only once throughout the period he/she holds convertible preferred shares. Written application on the intention of converting the convertible preferred shares into common shares should be sent to the Board of Bank TuranAlem OJSC till May 1 of each conversion year. - After the expiration of the conversion period, if 55% of the issued authorized capital of the bank is not bought by the strategic investor, then the holders of convertible preferred shares can request the bank to buy their convertible preferred shares, and the bank has to buy back the shares at the purchase price, which is set by the charter of the bank. Bank TuranAlem OJSC based on the volume of authorized capital is the second in banking sector of the republic. As of December1,2001 authorized capital of the bank accounts for more than USD146.5m. On volume of assets the bank is also the second one and as of December 1,2001 their level reached $1bn. Bank has credit ratings "Ba3" from Moody's and "B" (positive) from Standard & Poor's. The following is information based on data of Bank TuranAlem OJSC (it hasn't been rechecked by IRBIS agency). International Finance Corporation (IFC) entering into Group of World bank was founded in 1956 with the purpose of stimulation of internal and external investments into private sector of developing countries - members of IFC. It is presented at the market of Kazakhstan since 1995. As of December 01,2001 assets of IFC accounted for $26bn, authorized capital - $6bn. Credit ratings of IFC: "Aaa" from Moody's and "AAA" from Standard & Poor's. RZB is a central institution of Raiffeisen Austrian bank group. RZB performs a role of leading commercial and investment bank of Austria and is one of the largest participants of the financial services market of Central and Eastern Europe. Presently, RZB group has a network of 14 representative offices in Central and Eastern Europe, 2 representative offices in USA, 2 branches and 5 representative offices in Asia. As of December 01,2001 assets of RZB group achieved 42bn euro, authorized capital - 2.2bn euro. Credit rating of RZB: "A1" from Moody's and Standard & Poor's. According to results of 2001 central financial periodicals Global Finance and The Banker admitted RZB as "The best bank of Central and Eastern Europe" and "The Bank of Year of Central and Eastern Europe". European Bank for Reconstruction and Development (EBRD) was created in 1991. The main direction of its activity is a support in a transition to open economy and development of private and entrepreneurial initiative in countries of Central and Eastern Europe and CIS countries. Bank tries to help to 27 countries in a realization of structural and branch economic reforms with taking into account specific needs of these countries. EBRD assists with its investments a development of infrastructure of private sector in which 75% of financing of the bank is directed. As of December 01,2001 assets of the bank accounted for 22bn euro, authorized capital - 5.5bn euro. Credit rating of EBRD: "Aaa" from Moody's and "AAA" from Standard & Poor's. Investment company of Germany (DEG) was founded in 1962 and is specialized in long term project financing. The main goal of activity of DEG is a support and development of private sector in developing countries. The major shareholder of the company is a government of FGR. As of December 01,2001 assets of DEGH totaled 1.8bn euro, authorized capital - 0.9bn euro. Potential credit rating of DEG corresponds to sovereign rating of FGR. Holland bank of development (FMO) was founded in 1970 in the result of cooperation between Holland government and private sector enterprises. The main activity of FMO is a presenting long term financing for companies and financial institutions of developing countries. As of December 01,2001 assets of FMO totaled 1.5bn euro, authorized capital - 0.6bn euro. Potential credit rating of FMO corresponds to sovereign rating of Netherlands.