Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

28 Apr 1998



PSD disclosed:

14 Apr 1998

Project Description

The project consists of a convertible loan of US$ 40 million to Kazkommertsbank.
The project's main objectives are to provide medium-term credit resources in Kazakhstan and to channel them towards the country's private sector, to strengthen and enhance KKB's financial position and to assist the company in improving its commercial banking practices and corporate governance.

Transition Impact

This operation will contribute to the transition impact in Kazakhstan through the strengthening of a private local financial intermediary, which will continue to provide competitive banking services within the local market. In addition, the local economy will benefit from the on-lending to local enterprises, which will be undertaken on the basis of lending criteria and standards of international quality levels.

The Client

Kazkommertsbank (KKB) is the largest private sector bank in Kazakhstan and the leading provider of banking services to individuals and corporations. Its principal activity is the acceptance of deposits and the provision of credit facilities in tenge and foreign currency. As of September 1997, the bank had total assets of US$ 372 million.

EBRD Finance

The EBRD will extend a convertible loan of US$ 40.0 million to KKB, with an option to convert part of the loan into KKB's shares. Such an amount will not exceed the lower of US$ 20 million or an amount of shares equivalent to KKB's 10 per cent share capital and voting rights.

Project Cost

US$ 40.0 million (ECU 36.6 million).

Environmental Impact

KKB will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, KKB will require its borrowers to comply, at a minimum, with national/local health, safety, environmental and public consultation requirements.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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