Proposed acquisition of up to 15% of ordinary shares and voting rights in Kazkommertsbank (KKB) for an amount of up to €30.6 million. The EBRD’s investment will strengthen KKB’s capital base and support the bank in its efforts to broaden its international presence and investor base and further advance its corporate governance.
The transition impact of this project is twofold. Through the support of KKB’s capital growth the EBRD would enhance the bank’s position as one of the few sources of long term financing and efficient intermediaries for the local economy. Secondly, by its participation on the Supervisory Board, the EBRD will be able to contribute to the improvement of corporate governance and transparency of decisions.
Kazkommertsbank, the largest bank in Kazakhstan with total assets of US$ 1.4 billion and capital base of US$ 212.5 million as of June 30, 2002 (IAS). At the end 2002, the bank had 50 branches, 40 limited-service outlets, two overseas representative offices and almost 150 ATMs. KKB is one of the leading financial institutions in the country, accounting for 23% of the total Kazakhstan banking sector assets.
Acquisition of up to 15% of KKB’s ordinary shares and voting rights for an amount of up to €30.6 million.
KKB will continue to carry out its operations in accordance with EBRD's Environmental Procedures for Local Banks across the full range of its operations. In implementing these procedures, KKB requires its borrowers to comply, at a minimum, with national health, safety and environmental requirements.
The European Commission Tacis Programme has previously provided over € 100,000 for due diligence and environmental due diligence training assignments in support of the KKB senior convertible loan. 1997, KKB entered into a Twinning Program with Credit Commercial de France, which was funded by a US$ 1 million grant from the Austrian Government. The Program was concluded in 1999. The Twinning Programme strongly contributed to the successful development of KKB.
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