/IRBIS, September 29, 04/ - Kazkommertsbank JSC (Almaty), whose
securities circulate under category A of the official listing of Kazakhstan
Stock Exchange (KASE) distributed press release devoted to arrangement of
a loan granted by Citigroup under the guarantee of Overseas Private
Investment Corporation (OPIC), US government agency. OPIC will provide
75% refund provision for the loan.
Below is a full text of the press release issued by KKB at
http://www.kazkommertsbank.com/Releases/
KAZKOMMERTSBANK RECEIVES A $30 MLN LOAN UNDER THE
GUARANTEE OF US GOVERNMENT
The new loan will permit Kazkommertsbank to invest largely in
modernization and enhancement of its clients' small and medium
businesses.
27 September 2004 - Kazkommertsbank received a $30 million 4-year loan
from Citigroup secured by the guarantee of the Overseas Private Investment
Corporation (OPIC), acting under the US Government.
This loan was arranged and provided by Citigroup, as part of the CIS
countries lending program signed between Citigroup and OPIC, at the rate of
6-month LIBOR+1.7% pa with the purpose of further financing by
Kazkommertsbank of small and medium-sized businesses in Kazakhstan,
Russia and Kyrgyzstan.
Kazkommertsbank became the first commercial private bank in Central Asia
to be extended a loan under the guarantee of Overseas Private Investment
Corporation under the US Government (Overseas Private Investment
Corporation), said Mr. Andrey Timchenko, Managing Director of KKB.
лOPIC is a new and very important institutional partner for Kazakhstan. This
transaction reflects the confidence not only of US private investors but also,
primarily, the US Government¬, - added Mr. Timchenko.
Daniel Connelli, the chairman of JSC Citibank Kazakhstan pointed out:
лCitigroup is pleased to expand its relationship with Kazkommertsbank by
bringing this innovative deal to the Kazakhstani market. Cooperation with
institutions like OPIC reflects global opportunities of Citigroup for the local
market¬.
The terms of the new loan are very favorable for KKB in view of the tenor
and financing purposes. The OPIC's guarantee constitutes 75% of the loan
amount. The grace period for the repayment of principal is 18 months.
KKB will be able to finance (for up to 4 years) SME investment and
infrastructure projects which should not necessarily be tied to export of
goods and services from USA. As Kazkommertsbank has a subsidiary in
Kyrgyzstan and a strategic partner Moskommertsbank in Russia, the funds
will also be utilized for financing of SME projects in these countries.
For several years, Kazkommertsbank has been successfully cooperating
with various international development institutions on SME lending programs
in Kazakhstan, among which are EBRD, KfW, DEG, FMO and others. The
total amount of SME loans provided by Kazkommertsbank as at 30 June
2004 grew to 33,5 billion KZT from 24,5 billion KZT compared with the
similar period of 2003.
Overseas Private Investment Corporation USA - established in 1971 as an
American Government Agency, urged to encourage US foreign investments
by way of direct financing as well as rendering guarantees.
Kazkommertsbank - the largest bank in Kazakhstan with assets of about $4
billion, which loan portfolio equals to $3 bln. EBRD is one of KKB's
shareholders.
[2004-09-29]