Kazkommertsbank Syndicated Loan

Location:

Kazakhstan

Project number:

37652

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

14 May 2007

Status:

Complete

PSD disclosed:

01 May 2007

Project Description

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.

Transition Impact

The transition impact of the project is expected to be achieved in the following main areas:

  • 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.

  • 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.

 

The Client

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.

EBRD Finance

Up to USD 100 million.

Project Cost

Up to USD 300 million.

Environmental Impact

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.

Technical Cooperation

None.

Company Contact

Alfiya Aliyeva, Head of Structured Finance
Kazkommertsbank

Tel: +7 327 2 585 427
Fax: +7 327 2 585 237

E-mail: aaliyeva@kkb.kz

 

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

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