Development Bank of Kazakhstan JSC borrows a $40 m. syndicated loan

/IRBIS, Assel Omarova, Decmber 20, 04/ - Development Bank of Kazakhstan JSC (Astana), whose bonds are traded in Kazakhstan stock exchange' (KASE) official "A" listing category, today spread press-release, which says on December 15 of 2004 the bank signed agreement about borrowing of $40 m syndicated loan for 2 years with the right of prolonging for 2 years more. The message says this loan was given at LIBOR + 1%. HSBC Bank plc acted as organizer of the deal. It's also said that in order to reduce the risk of LIBOR growth the bank has made the deal of interest SWAP with JPMorgan Chase Bank London with 4-year term for the whole amount of the borrowing. Funds were given by 12 banks from 10 countries and 4 continents, among them: DEPFA Investment Bank Ltd., Arab Bank Plc., Calyon, Dresdner Bank AG, HVB Group, ING Bank N.V., Mizuho Corporate Bank Ltd., West LB AG., WGZ, JPMorgan Chase Bank London, Banca Nazionale del Lavoro S.P.A., Bank Austria Creditanstalt AG. Despite exceeding of bids on the initial amount of loan by 87.5% by several first-class financial institutions, the bank decided to keep from increasing the initial sum of borrowing. In DBK's opinion, major advantages of this borrowing are its term and the lowest cost of the borrowed funds in the history of Kazakhstan banks' syndicated borrowings. This sum satisfies the bank's needs for export clients financing. Borrowing of the mentioned loan will let the bank expand its investing activity and will promote to setting of new price parameters of borrowing for Kazakhstan borrowers. [2004-12-20]