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New EBRD loan for Kazakh's Bank TuranAlem OJSC
$30 million to strengthen Kazakh banking sector, enhance SME support
Bank TuranAlem in Kazakhstan (BTA) is borrowing $30 million from the European Bank for Reconstruction and Development and a consortium of banks led by Raiffeisen Zentralbank Österreich AG (RZB) to increase its lending to good local private-sector companies that are too small to attract foreign investment on their own.
Under the EBRD's A/B-loan structure, $20 million of the financing is being syndicated to seven participants: Joint Mandated Arranger RZB, Co-Arrangers HVB Group, Erste Bank der österreichischen Sparkassen AG, Natexis Banques Populaires, Lead Managers Bankgesellschaft Berlin AG, Dresdner Bank AG and Manager Adria Bank AG. The syndication of the B-loan closed 30 per cent over-subscribed, but due to the specific nature of such financings the facility amount was not increased.
Access to medium- and long-term finance is limited in Kazakhstan, said Hubert Pandza, the EBRD's Business Group Director for Central Asia and Russia. This facility will be promoting local economic development by partially filling this gap. The ultimate beneficiaries will be smaller companies that are constrained by limited local funding sources, Mr Pandza added.
This latest deal enhances the EBRD's long-standing relationship with BTA. Since 1998, the EBRD has provided BTA funding under a range of programmes supporting the Kazakh banking sector, small businesses and trade.
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