Kazakhstan Development Bank JSC reported on 2004 results

/IRBIS, Natalya Kuznetsova, February 9, 05/ - Kazakhstan Development Bank JSC (Astana), with bonds traded under official "A" listing of Kazakhstan Stock Exchange (KASE) released an announcement today reporting on 20040 results. "The bank finances projects that form chains of technologically bind production, lends funds to large investment projects by uniting not only local banks but international financial institutions as well (EBRD, IBR, ABN AMRO)", the statement says. Beginning from the moment of bank creation, the bank approved and agrred to finance 51 projects (investment and export projects) for a total amount of $894.5 m with participation of bank for $478.1 m. Today, more than fourth part of investment lending by the banking system of Kazakhstan falls at the stake of Kazakhstan Development Bank JSC. In 2004 the bank financed operations of following enterprises: - Ekoton + JCS (concrete manufacturing plant, Astana) - $12.8 m / $6.0 m (total cost of the project/bank loan) - Yutex JSC (cotton processing complex, Shymkent) - $19.3 m/ $13.1 m (total cost of the project/bank loan); - Industrial corporation Yzhpolymetal JSC (manufacturing complex on renovation and manufacturing of pointworks, Kentau) - $10.1 m/$10.1 m (total cost of the project/bank loan); - Altyn-Nan LLP (corn processing plant, Shemolgan, Almaty oblast) - $15.4 m / $13.9 m (total cost of the project/bank loan); Kazakhstan Development Bank JSC services 10 investment projects acting as an agent for the government of Kazakhstan. Those projects are related to different industries and accomplished at the expense of the state and government- guaranteed loans for a total amount $620 m. Bank informs in the last year the Association of Development Financial Institutions in Asia Pacific named the construction of mooring, space and road under the program of sea operations in Tupkaragan gulf as "Best infrastructure project of the year". The statement says in 2004 Kazakhstan Development Bank JSC agreed to finance following projects, which are to be realized in 2005: - Agromashholding JSC: resuming operations, AMZ -MAN modernized engine manufacturing and creation of service centers for agricultural machine (Kostanai), total cost - $40 m, out of which - $20.2 m is granted by the bank; - Astana Polygraph JSC: introduction of book publishing technological line (Astana); total cost - $13.5 m, out of which - $13.5 m is granted by the bank; - Melanzh JSC: reconstruction of a Turkish and painting manufacturing of a cotton made fabric (Shymkent); total cost - $40.5 m, out of which - $34.4 m is granted by the bank; - Kazenergocabel JSC: cable manufacturing business expansion including fixed lines for telephones, network cables with XLPE isolation; total cost - $10 m, out of which - $5.3 m is granted by the bank; - Biohim Company JSC: construction of an ecological friendly fuel bio compound manufacturing complex (Tayinsha, North Kazakhstan oblast); total cost - $70.1 m, out of which - $53.8 m is granted by the bank; - Nov Pack LLP: paper manufacturing base expansion (Boralday, Almaty oblast); total cost - $15.2 m, out of which - $8.1 m is granted by the bank; The statement also says that with the purpose of obtaining maximum effect from investment, further expansion and development of already existing project is assumed, such as second and third stage of electricity grid "North - South of Kazakhstan", projects supporting development of support bases in Tupkaragai gulf, construction of new optical communication lines. Among brand new projects it is worth noting the construction of an aluminum refining plant in Pavlodar, the expertise and financial structuring of which the bank is currently holding. In order to provide appropriated funding base, the bank employs various financial instrument either at local and international markets: inflation-linked, Eurobond, syndicated loans and budget loans. From the date of bank creation to January 1, 2005 Kazakhstan Development Bank JSC borrowed for a total amount of $376 m In 2004 Kazakhstan Development Bank JSC received a syndicated loan for $40 m maturing in 2 years with prolongation option for 2 additional years. The loan was priced 100 bp over LIBOR. This is the lowest cost of syndicated loan ever attracted by Kazakhstan banks. HSBC Bank plc lead arranged the deal. 12 banks from 10 counties participated in the deal. Moreover, the bank entered a swap agreement with JPMorgan Chase Bank London for 4 years covering whole amount of the loan. Bank total assets at Jan 1, 2005 amounted KZT99.6 bn, shareholder equity equaled KZT55.4 bn. According to 2004 results bank's bottom line figure totaled KZT3 bn. Bank's ratings are in line with those of Kazakhstan: BBB-(stab)/Baa3(pos)/ BBB- (stab) as per Standard and Poor's, Moody's and Fitch. [2005-02-09]