In 2003 Development Bank of Kazakhstan may issue internal bonds

07.11.02 00:00
/REUTERS, Astana, Raushan Nurshayeva, November 7, 02/ - The State Development Bank of Kazakhstan does not exclude the possibility of issue in 2003 of seven-year internal bonds in order to sell the remaining limit of borrowing equaling to $42 m, said the bank's vice-president Medet Sartbayev. At the press-conference on Thursday he said that Development Bank, 75% of which belonged to the Government, and 25% - to akimats (administrations) 14 oblasts and cities Alma-Ata and Astana, had as of October 1 the announced authorized capital of KZT30 bn that is equal to $200 m. "The shareholders meeting of Development Bank set limits for the period 2002 - 2003, ratio of debt towards capital - one to one. Our capital is $200 m, so the debt, which we can form for two years, is also equal to $200 m. this is a rather conservative principle", - he said. The Bank has borrowed from limit equaling to $200 $158 m already, having issued in this year five-year bonds for $30 m, having formed syndicate loan for $28 m and, at last, having offered in October eurobonds for $100 m. "Thus, there remained $42 m... We suppose, they will be used for different instruments... These may be issues of internal bonds in Kazakhstan, may be, with 7-year circulation term", - said Sartbayev. He added that a part of borrowing limit may be used in relation to borrowing of foreign insurance agents' funds. According to Sartbayev's words, the Development Bank, which was founded in April of 2001 for realization of investment projects in non-raw stuff sector of Kazakhstan economics, has already received projects for total amount of $1.8 bn. The bank refused financing projects for $800 m, it considered them "not corresponding to credit policy principles and bank's requirements". "Of the approved projects today our portfolio equals to $100 m", - he said, having added that that number comprised seven investment projects and eight export credits for the amount of $51 m. He called projects for more $100 m "close to approval". As priority sectors for financing the bank called oil and gas infrastructure, transport branch, food industry, paper production, engineering industry. Development Bank's President Kambar Shalgimbayev at the same press- conference said that the Bank did not refuse cooperation with commercial banks concerning joint financing this or that project. "The peculiarity of the Government's Development Bank - we conduct conservative policy and in accordance with this, when we examine projects, the compulsory condition is sharing of risks... Fight for clients is not our task. The Bank's task is realization of Government's investment policy ", - said Shalgimbayev. He also added that as of October 30 of 2002 Development Bank's authorized capital was formed for 96.8%. "We think that till the end of the year it will be entirely formed. There is understanding of oblasts and Government understands", - said Shalgimbayev. [2002-11-07]