Advantages of investments into the real sector of economy through issue of bonds of Tsesnabank JSC - release

/Tsesnabank JSC, September 27, 05/ - Tsesnabank JSC offers guaranteed profit, borrows funds to real sector of economy, increases terms and reduces interest rates of borrowing by issuing coupon bonds. On September 28 in Rakhat Palace hotel the second bond issue of Tsesnabank JSC will be presented. Offering bonds on domestic market for 7 year, the bank is able to provide their full service, and redeem them in the end of the term. This is proved by stable growth of main indicators. Within 9 months of this year the bank's assets grew by 27% to KZT25.8 bn., capital grew by 39% to KZT2.78 bn. Net income for 8 months - KZT340.58 m., credit portfolio as of September 1 of 2005 totaled KZT17.48 bn., having grown by KZT6.4 bn. compared to similar date of last year. Rating agencies assigned bank ratings to Tsesnabank JSC - Moody's: "В1" on deposits in foreign currency and "Е+" financial strength rating. On August 15 Standard & Poor;s assigned "В-/С" rating Outlook is "Stable". For Tsesnabank JSC this is not the first securities issue. Tsesnabank JSC entirely offered the first issue of 3-year bonds for a total of KZT1.5 bn. among institutional investors in May of 2004. It's planned to offer the second bond issue for a total of KZT3 bn. and yield of 9% APR on Kazakhstan stock exchange till the end of 2006. Bond's face value is one tenge, number of bonds - three billion units. Coupons on bonds are paid twice a year. This is one more instrument for money offering. To compare with placement of funds on bank deposit, bonds purchase is more profitable - fixed and predictable profit on them, and in case of further improvement of the Bank's positions as the whole, upgrade of its ratings, growth of the face value of purchased bond in comparison with the initial one. The Bank offers to investors the guaranteed stable income, investing funds into real sector of economy for financing clients on crediting programs. The Bank presumes to increase terms on given loans and reduce interest rates. And bond buyer, except the guaranteed income on stable interest rate, can earn profit from growth of bond's cost. Both physical and juridical persons can buy bonds. Tsesnabank JSC determined Derbes Securities JSC and Centras Securities JSC as co-underwriters on offering the second issue of inscribed coupon bonds on Kazakhstan's stock market. [2005-09-27]