OREANDA-NEWS. On October 08, 2007 Bank TuranAlem JSC (Almaty), shares and bonds of which are traded in the category "A" official list of Kazakhstan stock exchange (KASE), had provided KASE with the press release of the following content, reported the press-centre of KASE:

On October 5 of 2007, ABN AMRO Bank N.V., JPMorgan and Standard Chartered Bank announced about completion of the securitisation (issue) for Bank TuranAlem JSC to the sum of $750 m.

The mentioned issue has been made by the specialized financial company BTA DPR (issuer) and is the first issue of borrowings on international market in accordance to the Bank's program of bonds issue, secured by Diversified Payment Rights (DPR). Tree from four issues of this program are secured.

The given securitisation is the biggest solitary transaction of a Kazakhstani issuer.

ABN AMRO Bank N.V. and Standard Chartered Bank performed as the joint agents of register keeping and were the organization of the deal together with JPMorgan.

Each of the bond issuers of 2007-A series, 2007-B series, 2007-C series and 2007-D series has a floating rate; at that, 2007-A series, 2007-B series, 2007-C series are secured by highly tailored insurers who guarantee well-timed payments of the principal and interest.

DPR securitisation program is an important addition to BTA's efforts of entering international investment market that would give an access for the cheap funding sources to the bank. The deal's structure and the presence of highly tailored insurers were the main factors for the successful completion of the deal in the formed situation on capital market and allowed the bank to offer bonds at the price that is considerably lower than current BTA's risk prices.

The mentioned transaction clearly shows that BTA is following its strategy of diversification of funding sources. The bank attracted the absolutely new investors and, the most important is that it showed the ability of continuing the program of borrowing abroad despite to the situation, formed on global markets.

The capital, raised from the deal, will be used for general corporate goals and will not be allocated on financing of the current loan as no repayment of loan lies ahead for BTA in the near future.

BTA achieved to close the deal in the conditions when the capital market experienced great psychological pressure, after S&P had informed about the possible reconsideration of the country's ratings and revision of the bank's rating forecast. This proves the high trust level of investors to Bank TuranAlem and to Kazakhstan's economy on the whole.

Indeed, GDP growth in the first half-year of 2007 made 10,2% and growth of nominal wages - about 28%. In January - August of 2007, the investments in the fixed capital totaled KZT1,783.7 bn.

As of September 1 of 2007, according to unaudited consolidated balance sheet, the assets of the Bank has grown by 50,9% up to USD24,659 m. since the beginning of the year; credit portfolio - by 76,74% up to USD18,695 m.

At the same time, the Bank's liabilities have increased over the pointed period by 45,62% up to USD21,562 m., including clients' deposits – by 48,14% to USD6,161 m. Bank's capital grew by 102,09% up to USD3,097 m. The net profit of the Bank has made USD373 m., having increased by 73,64% in comparison with a similar period of the last year. The capital adequacy coefficient made: E1 – 14,30%, E2 – 15,81%.

Over the period since the August crisis on global markets, the Bank has conducted a series of actions for its financial discipline improvement: a thorough analysis of the existing credit contracts, credit applications, and credit lines has been made. The accent was made on cashless financing from foreign banks with BTA guarantees. A work with big borrowers has been carried out.

Jointly with clients, certain work on refinancing a part of projects through international banks has been made. Swap operations with the National Bank of the Republic of Kazakhstan and short-term borrowings on interbank market were used.

As a result, the volume of overdue loans totaled less than 1% of the credit portfolio volume; the stake of ten big borrowers made about 14,9% of the bank's portfolio.

The bank has a good liquidity cushion. The liquid assets totaled 19,73% of all assets.

In the middle of September, the bank had successfully paid back the bridge loan to the sum of USD600 m. and managed to achieve an agreement on gradual refinancing of a half of this sum with time to run equal up to ten years. The bank also conducted the interest payment on eurobonds of different maturities that had been issued earlier to the total sum of about USD41,6 m.

By the end of year, the bank has to repay about USD30 m. on its foreign debt.

Moreover, the Bank continues its active work on securitisation projects of its retail portfolio.

At the same time, the Bank is actively conducting the explanatory events with foreign investors including:

- it conducts regular conference calls with foreign investors and sends   supplemental information;

- it is planning to hold an informational road-show for international   investors (U.S., Great Britain, Singapore) in the middle of October.

Bank TuranAlem JSC (BTA) is one of the largest banks and leader in creation of banking network on the territory of CIS countries.

Being present in CIS countries and far abroad, Bank TuranAlem is widening its presence in CIS countries, which is shown by availability of network of banks - strategic partners of BTA, activity of which spreads on Ukraine, 4 regions of Russia, Byelorussia, Armenia, Kirgizstan and Turkey. Representations of BTA are working in Russia, Ukraine, China and UAE.

Bank TuranAlem have the branchy network of subsidiaries all over Republic of Kazakhstan (22 subsidiaries and 256 departments).

Bank TuranAlem has been named "Bank of Year in CIS" by the authoritative financial magazine Itogi, and also "Best bank in the Central Asia" in 2006 and 2007 in opinion of Euromoney magazine. Authoritative business magazine, The Banker placed BTA in the ranking of world's 300 best banks and awarded with the third place in the nomination of "Year's breakthrough". The European Business Assembly (EBA, Oxford, Great Britain) awarded BTA with "Best Enterprise of Europe" title in banking sector of Eurasian region.