Bank CenterCredit JSC (Kazakhstan) to start floatation of its 7th issue bonds

/IRBIS, Ranida Gabdeyeva, May 19, 05/ - Bank CenterCredit JSC (Almaty), whose shares and bonds are traded in Kazakhstan stock exchange's (KASE) official "A" listing category, has spread press-release saying bank intends to start floatation of its seventh issue bonds with the face value of KZT1,000 for a total of KZT2 bn. Bonds circulation term is 10 years since circulation start date without guaranteeing fulfillment of obligations on bonds. Bonds are inscribed, bonds type - coupon, indexed, subordinate, issue form - non-documentary. Floating coupon rate - 7% APR from bonds face value for the first circulation year. Afterwards interest rate is floating, depending on inflation rate determined every 6 months. Financial consultant and underwriter of the issue is KIB Asset Management JSC, company's independent registrar is Center DAR LLP. "We expect potential investors, first of all, will be pension funds and insurance companies. For them (institutional investors) these bonds is an attractive opportunity for investing assets under conditions of financial instruments deficit, and for Bank CenterCredit JSC bonds floatation means further strengthening of its positions in the development of real sector of Kazakhstan economy", - Lyubov Karlash Bank's Managing Director says. Bank also says its assets in year 2004 grew by 81% to KZT148.4 bn., shareholders equity grew within the year by 64% and equaled to KZT12.2 bn. by the end of 2004. Net profit of Bank CenterCredit JSC in 2004 grew 1.9 compared to year 2003 to KZT2.4 bn. Loan portfolio grew within year 2004 by 76% to KZT91.4 bn. Retail loans portfolio grew 2.3 times in comparison with last year to KZT19.2 bn. Term deposits of clients grew 2.1 times compared to last year to KZT68.4 bn. Interest income grew 1.7 times in comparison with year 2003 to KZT12.3 bn. (mainly due to growth of interest incomes on loan portfolio). According to bank's data return on equity (ROE) for year 2004 totaled 26%, and return on assets (ROA) totaled 2.1%. As of April 1 of 2005 bank had 19 branch offices and 100 cash-settlement offices in Kazakhstan. Bank CenterCredit JSC has Ba1 long-term rating on bank deposits in foreign currency assigned by Moody's Investors Service Inc. and B+ assigned by Fitch Ratings Ltd. On February 11 of 2005 bank issued eurobonds for a total of $200 m., maturity term is year 2008, interest rate is 8%. Bank CenterCredit JSC has subsidiary companies: on assets management, leasing one and Kapital pension fund. [2005-05-19]