The proposed US$ 10 million mortgage loan, in either KZT or US$, will be on-lent by Bank Center Credit to individuals for purchase/construction/refurbishment of their primary residential homes.
This mortgage loan is the second EBRD will be granting in Kazakhstan and it will be extended to a second tier medium-sized bank, whose appetite for mortgage lending is still restricted by the lack of long-term financing.
The second EBRD mortgage loan in Kazakhstan will further support the development of the housing mortgage market by providing long-term financing to a local commercial bank. Expansion of mortgage lending will make the mortgage market in Kazakhstan more competitive and transparent, allowing a wider range of customers to have access to mortgage financing at reasonable rates and to benefit from other improvements which competition brings.
EBRD will ensure that BCC continues to set best corporate and lending practice. In addition the loan will facilitate promotion of mortgage bond issuance and further potential developments of the secondary market for mortgages. Finally, by helping to develop mortgage backed products (loans and securities), the EBRD will be creating alternative investments - both in terms of quality risk profile and term - for Kazakh pension funds and in future for insurance companies, mutual funds and other investors with a long term horizon.
Bank Center Credit was established in 1988 and is now the fifth largest bank in Kazakhstan. BCC is a universal bank, but due to its size, focuses more on providing services to local SMEs and private individuals.
Senior secured loan of US$ 10 million equivalent, in either KZT or US$.
US$ 10 million.
BCC will be required to carry out its operations in accordance with the EBRD’s Environmental Procedures for Mortgage Loan and, at the same time with the Environmental Procedures for Intermediated Lending through Local Banks, including adherence to EBRD’s Environmental Exclusion List, compliance with national environmental, health and safety regulations.
Mr. Timur Ishmuratov
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