/KASE, February 22, 06/ - BTA Ipoteka JSC (Almaty) and ABN AMRO today spread joint pres release of the following content.

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London, Almaty , February 22, 2006

ABN AMRO has closed a USD 150 million mortgage-backed securitisation for BTA Ipoteka, the consumer lending subsidiary of Bank TuranAlem. The transaction is the first true sale securitisation of mortgage loans that raises international funding backed by consumer assets located in Kazakhstan (i.e. securitisation involve the sale of securitised receivables that are isolated from the bankruptcy or insolvency of the originator).

Comprising the sale of residential mortgage loans originated across Kazakhstan by BTA Ipoteka, the transaction is partially enhanced by political risk insurance provided by Multilateral Investment Guarantee Agency, a subsidiary of the World Bank.

The loans were sold to First Kazakh Securitization Company B.V., a newly established special purpose vehicle (SPV) located in the Netherlands. The SPV is ultimately funded by an ABN AMRO-sponsored multi-seller conduit (rated A1+ / P1 by S&P and Moody's, respectively).

BTA Ipoteka, which began operating in 2000, is one of the largest players in the Kazakhstan mortgage lending market (with 20% market share) and aims to develop its mortgage lending business at home and in other CIS countries. This securitisation, which opens a new jurisdiction for investors in asset-backed securities, confirms Bank TuranAlem's innovative approach to funding.

Kairat Altynbekov, Vice President of Finance of BTA Ipoteka, said: "Though the transaction represents a new jurisdiction for ABS transactions and a new type of funding for ourselves, the deal was successfully structured due to the significant contribution and professionalism of ABN AMRO, their innovative approach, and thorough understanding of our objectives".

Luis Carvalho, Head European Conduit Securitisation at ABN AMRO, said: "This is the first time a financial institution has securitized its local mortgage loans portfolio in Kazakhstan, opening an important funding source to support the development of the local real estate and mortgage loans markets in Kazakhstan and the CIS countries".

While the structuring process has been challenging given the product novelty in Kazakhstan, an execution timing of 8 months was achieved mainly thanks to the admirable commitment and professionalism of BTA Ipoteka's structuring team as well as an invaluable contribution from all other transaction parties.

ABN AMRO's global conduit business comprises 50 professionals working in regional hubs. The largest teams are located in Chicago and Amsterdam. ABN AMRO sponsors and administers 10 conduits, with total asset-backed commercial paper outstanding of approximately USD 65 bln, making ABN AMRO the third largest global player and the largest European conduit sponsor.

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For further information please contact:

Mark Bennewith, ABN AMRO +44 20 7678 8270 Sulushash Magzieva, ABN AMRO Kazakhstan ((+7 333 270 2752) Nelly Kim, BTA Ipoteka (+7 3272 952474, in.192, nellyk@ipoteka.kz)

Additional information:

BTA Ipoteka

By the end of 2005 the company's equity capital was KZT2,709.9 m. Assets increased 3.5 times in comparison with 2004. The company is active participant of Kazakhstan stock exchange.

BTA Ipoteka JSC issued in 2005 mortgage credits for the amount KZT29.6 bn. and continues to stay one of the leading players in the market of mortgage crediting. Total credit portfolio of BTA Ipoteka JSC reached KZT41.5 bn.

The company along with domestic financial institutions signed Memorandum about collaboration on realization of State program of house construction for 2005-2007 with the Government of the Republic of Kazakhstan and at present is one of active participants on realization of this program.

ABN AMRO

Netherlands-based ABN AMRO is a leading international bank with total assets of EUR 880.8 bln (as at 31 December 2005). It has over 3,000 branches in more than 60 countries and territories, and has a staff of over 96,000 full-time equivalents worldwide. ABN AMRO is listed on Euronext and the New York Stock Exchange.

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[2006-02-22]