KAZKOMMERTSBANK OJSC made advanced repayment of syndicated loan for $150 m

/IRBIS, 01.07.03/ - Today KAZKOMMERTSBANK OJSC distributed news release, where it is said that on June 30, 2003 the bank made an advanced repayment of syndicated loan for $150 m. The loan was given on December 20, 2001 by the syndicate of international banks with 12 months payment term and was prolonged to December 2002 for the same term. Mandate on loan organization was received by Deutsche Bank AG London. Group of organization members included ING Bank N.V., Piraeus Bank S.A., and Garanti Bank International N.V. Leading managers were of syndication were American Express Bank GmbH, Bank Sepah International Plc, Bankgesellschaft Berlin AG, Commerzbank (Eurasija) SAO Moscow, (HVB Group) Bayerische Hypo-und-Vereinsbank AG, Bank Austria Creditanstalt AG, International Moscow Bank, Moscow, JP Morgan Chase Bank, Kuwait Investment Company (S.A.K.), Landesbank Rheinland Pfalz-Girozentrale, Mashreqbank psc, National Bank of Pakistan, New York, Raiffeisen Zentralbank Oesterreich AG, Wachovia Bank, National Association, ABN AMRO Bank Kazakhstan. At the same time Bank Leumi Le-Israel B.M., Erste Bank der Oesterreichischen Sparkassen AG, Israel Discount Bank of New York, Natexis Banques Populaires, Sumitomo Mitsui Banking Corporation, The Bank of New York, Bank Melli Plc were credit managers. It is notable that new well-known foreign finacial institutions entered syndicate with rather big share. The loan was called for the aim, related to trade, which contributed to deliveries of food, medicines and machines for food and light industries to the Republic, and also to export of metals, Balsam Wool, grains and other products. It is said in news release that this credit signified new reference point for the bank in attracting loans in the international debt markets, because it was the first time in the history of Kazakhstan banking sector when the largest syndicate was attracted at the lowest cost. KAZKOMMERTSBANK OJSC decided to made the advanced payment due to temporary overliquidity of the bank, occurred as a result of floatation of eurobonds totaling $500 m in April of the current year. Director of KAZKOMMERTSBANK OJSC department of financial institutions, Andrey Timchenko noted that there was also another reason that influenced the decision of repayment before the due date - at present, market prices are lower than cost of this credit. Timchenko also said that trade financing is one of the priority directions of the bank, and syndicated loan is an effective instrument for satisfying the needs of the clients. Depending on clients' orders, the bank will continue attracting such credits once or twice a year. At present, KAZKOMMERTSBANK OJSC is the largest Kazakhstan bank with assets of $2.45 bn and amount of shareholders' equity of $203 m. It is presented in all business centers of Kazakhstan, has a daughter bank in Kyrgyz Republic and prepares to purchase Russian Moskommertsbank. Among its shareholders are European bank of Reconstruction and Development (15% common voting shares). According to information as of June 1, 2003, calculated with Kazakhstan accounting standards, income of the bank grew by 3.2% relative to the similar period of the last year and totaled $20.8 m, size of credit portfolio increased by 20.2% and exceeded $1.3 bn, volume of liabilities increased twice and totaled over $2.2 bn. [2003-07-01]