Kazkommertsbank JSC (Kazakhstan) and Citibank Kazakhstan jointly financed sale and export supplies of Kazakhstan wheat

/KASE, January 24, 06/ - Press-service of Kazkommertsbank JSC (Almaty) on January 24 spread press-release of the following content: Quotation start Kazkommertsbank (KKB) and Citibank Kazakhstan on December 29, 2005 signed three-power Credit Agreement with Corporation APK-Invest LLP for the amount USD10 m., within which financing of the company for purchase of grain to fulfill export and internal supplies of wheat harvest 2005/2006 was provided. Credit was given till October 31, 2006 under security of grain receipts and money funds, received in future on export and trade contracts. This loan Corporation APK-Invest LLP uses for purchase of grain from medium and small farms with a view of further sale, as in external, as well as in internal markets. Corporation APK-Invest LLP is the biggest client of Kazkommertsbank and one of the leading participants of grain market in Kazakhstan. KKB during many years actively collaborates and supports development of agricultural sector of Kazakhstan by providing wide category of clients of this sector with credits for establishment and development of business, and also various investment projects. In structuring of this sector peculiarities of agricultural sector were taken into account, particularly, flexible schedule of debt redemption was applied, which allows client to use earnings, received on export and trade contracts, for settlements with creditors, Alexander Yakushev, Managing Director of Kazkommertsbank JSC informed. "We would like to underline, that credit was organized by two big Kazakhstan banks, Kazkommertsbank and Citibank Kazakhstan, which were co- creditors, where Kazkommertsbank acts also as agent on supply. Such joint partnership allowed clients to get loan on beneficial for him conditions. Participation of Kazakhstan banks in pre-export financing of agricultural enterprises is key factor in realization of state program on development of agricultural sector", - Mr. Yakushev said. Corporation APK-Invest LLP is servicing in Kazkommertsbank since 1998, within eight years of mutual beneficial collaboration the company's many questions were solved. We, as participants of Kazakhstan's grain market, know problems of agricultural production. Agricultural economy, being priority and strategic important sector for the Republic of Kazakhstan, has big value for development of the country's economy as a whole. Climatic conditions of our state allows successfully develop production of domestic wheat. That is why, for development of agricultural sector and business as a whole, access to credit funds of Kazakhstan banks on acceptable terms has very important value foe Kazakhstan agricultural enterprises", - Timur Sultanov, general director of Corporation APK-Invest LLP noted. "This deal demonstrates, how may be successful partnership of Citigroup, of the world acknowledged leader in trade financing, with leading Kazakhstan bank in realization in 2005 of Program of pre-export financing of grain in Kazakhstan. Close collaboration of both banks and providing by Citibank Kazakhstan with interbank credit of Kazkommertsbank allowed to offer the best terms to borrower - Corporation APK-Invest LLP. Till the end of the current year Citibank Kazakhstan plans to provide such loans to several big grain companies for total amount USD50 m.", - Tomash Bravenets, Director of Banking products development department informed. Corporation APK-Invest LLP is one of the biggest grain companies in Kazakhstan. Kazkommertsbank - Kazkommertsbank with assets nearly $8 bn. is one of the biggest banks of Kazakhstan. Loan portfolio, by preliminary non-audited data, in 2005 grew 1.5 times to USD5.4 bn. Kazkommertsbank - the only bank in post-soviet space and in Eastern Europe, included in index Dow Jones. Citibank Kazakhstan - 100% subsidiary company of Citigroup. Citigroup (NYSE: C) is a leading world financial company, servicing nearly 200 m. clients' accounts in more than 100 countries of the world. More detailed information about Citigroup is represented in Internet in site: www.citigroup.com For contacts: Aigerim Kasymbekova, leading manager of Financial institutes department, Tel: +7 (3272) 585 427, E-mail: akassymbekova@kkb.kz Alina Stukova, manager on connections with people and mass media of Public connections department, Tel: +7 (3272) 585 392, E-mail: astukova@kkb.kz Quotation end [2006-01-24]