Project description
and objectives:
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The proposed project consists of an A/B syndicated loan to Kazkommertsbank in
an aggregate amount of up to USD 300 million for the development of mortgage
lending in Kazakhstan and the diversification of the Kazakh economy by funding
enterprises that are not engaged in the construction and the oil and gas
sectors.
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Transition impact:
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The transition impact of the project is expected to be achieved in the
following main areas:
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Lengthening of syndicated loan maturity. The project will be aimed at
extending the maturity of the syndicated B Loan from commercial banks for up
to 5 years (while the EBRD A Loan will be for up to 7 years, while
diversifying the sources of commercial funding. To date the longest syndicated
loan attracted for any Kazakh bank has not exceeded 3 years.
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Financial intermediation and dedicated use of proceeds. The use of proceeds
will be for
(i) financing of private non-construction and
non-oil sector corporate companies, which will support the diversification of
the real sector of the Kazakh economy; and
(ii) residential
mortgages for private individuals, which will comply with EBRD’s Minimum
Standards for Mortgage Loans.
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The client:
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Kazkommertsbank (“KKB”) is the longest standing EBRD client in Kazakhstan. KKB
is the largest bank in Kazakhstan with total assets of USD 19.2 billion and
total BIS Tier 1+2 capital of USD 2.6 billion (IFRS) at year-end 2006. KKB has
long-term ratings of BB+ from Standard & Poor’s, Ba1 from Moody’s and BB+ from
Fitch.
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EBRD finance:
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Up to USD 100 million.
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Total project cost:
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Up to USD 300 million.
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Environmental impact:
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KKB is already implementing the Bank’s Environmental Procedures for Local
Banks under the equity operation and regularly reports on environment, health
and safety matters to the Bank. The Bank’s environmental consultants provided
additional environmental due diligence training for Kazakh partner FIs,
including KKB, in 2006. In relation to the new project, KKB will be required
to continue to implement the Bank’s Environmental Procedures for Local Banks
and Environmental Procedures for Residential Mortgage Loans for the specific
residential mortgage operation as well as to continue to submit annual
environmental reports to the Bank.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Alfiya Aliyeva, Head of Structured Finance
Kazkommertsbank
Tel: +7 327 2 585 427
Fax: +7 327 2 585 237
E-mail: aaliyeva@kkb.kz
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EBRD contact:
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Tatyana Tyo, Operation Leader: tyot@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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