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EBRD lends $50 million to Kazkommertsbank
First EBRD loan syndication in Kazakh banking sector warmly received
A $50 million EBRD loan will enable Kazkommertsbank to increase its lending to private companies across Kazakhstan, filling a financing gap. The loan is also important because it is the first syndicated loan structure arranged by the EBRD in the banking sector in Kazakhstan, and was enthusiastically received by foreign investors.
Kazkommertsbank is the largest bank in the country, with a strong market share in loans, assets, equity and deposits. As a universal bank with ratings of BB-(Fitch), BA2(Moody's), B+(S&P), it offers all major products and services currently available on the market. Proceeds of the $50 million loan will will be used to support private companies that need greater access to term funding, which has been difficult to obtain for many commercially oriented companies looking to increase productivity and capacity.
The loan consists of an "A" loan of $30 million (€32 million) representing EBRD direct exposure and a $20 million "B" loan syndicated among international commercial banks. The transaction was oversubscribed by $4 million. Co-lenders include Bayerische Hypo- und Vereinsbank AG, Landesbank Schleswig-Holstein Girozentrale, Citibank N.A, Erste Bank, Hamburgische Landesbank - Girozentrale - and Natexis Banques Populaires.
The very successful syndication of this long-term loan shows that there is a strong appetite from the market to fund well-structured transactions alongside the EBRD in the more difficult countries in the region, said Lorenz Jorgensen, the EBRD's Director of Syndications.
At 31 July 2002 the EBRD had agreed to invest €801.6 million in 37 projects in Kazakhstan. Six are in the public sector: for railway track maintenance and commercialisation, power and transmission rehabilitation, reconstruction of Aktau Port, waste rehabilitation, development of the Almaty-Bishkek road, and improved operations at Atvrau airport. Recent private-sector investments include a proposed programme for lending against warehouse receipts for agribusiness companies, and extending credit lines to micro and small enterprises.
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