06.11.2008, 09:19
Kazkommertsbank to Support Real Sector of Economy
OREANDA-NEWS. November 05, 2008. Kazkommertsbank has been selected by the Government of Kazakhstan as a strategic partner in implementing measures to support the real sector of the economy, reported the press-centre of Kazkommertsbank.
It is expected that Kazkommertsbank may raise about US300 million by selling newly issued common and preferred shares to the Government. The Government’s stake in the bank will be limited to 25%.
Direct participation of the government in the bank’s capital demonstrates its intention to provide support to the bank if necessary and to reinforce confidence among depositors, corporate clients and investors.
"At the moment we do not need any additions to our capital, which exceeds the National Bank and FMSA requirements. It is important for us as a Kazakh financial institution to participate in this programme to support the national economy", - said CEO Nina Zhussupova.
The bank accumulated KZT 178 billion in provisions as of 1 July 2008, which is 7.2% of its total loan book according to its IFRS reports. The bank’s Tier 1 capital adequacy ratio was 10.6% and total capital adequacy ratio was 13% as of October 1, 2008 based on FMSA methodology while minimum requirements are 5% and 10% respectively.
"We believe that it was an appropriate decision by the Government to provide funding to the economy not only through state-owned development institutions, but also through commercial banks. It will compensate for the credit shortage in the domestic market and improve access to finance for companies and individuals during the global financial crisis",- said Ms. Zhussupova.
This initiative of the Government follows earlier measures to strengthen the Kazakh banking sector, which included an increase in the guaranteed amount of retail deposits from KZT 700 thousand to KZT 5 million, covering 99% of all retail deposits in the country according to FMSA calculations.
The placement of shares will be conducted fully in line with the requirements of the Law on Joint Stock Companies and will require an approval by the Board of Directors and a General Shareholders’ Meeting. The bank will comply with all requirements of the Kazakh Stock Exchange and the London Stock Exchange.
The Government intends to invest into the bank’s capital for a limited time period as a strategic partner and in full compliance with requirements of the legislation and rights of other shareholders. It is expected that the shares will be sold by the Government on market terms once global financial markets conditions improve.
The number of shares in the new offering, participation of a Government representative in the Board of Directors and other details of the transaction will be discussed with the Government during further negotiations. The time frame for the transaction will depend on completion of standard procedures, including holding the General Shareholders’ Meeting and placement of new shares.
It is expected that Kazkommertsbank may raise about US300 million by selling newly issued common and preferred shares to the Government. The Government’s stake in the bank will be limited to 25%.
Direct participation of the government in the bank’s capital demonstrates its intention to provide support to the bank if necessary and to reinforce confidence among depositors, corporate clients and investors.
"At the moment we do not need any additions to our capital, which exceeds the National Bank and FMSA requirements. It is important for us as a Kazakh financial institution to participate in this programme to support the national economy", - said CEO Nina Zhussupova.
The bank accumulated KZT 178 billion in provisions as of 1 July 2008, which is 7.2% of its total loan book according to its IFRS reports. The bank’s Tier 1 capital adequacy ratio was 10.6% and total capital adequacy ratio was 13% as of October 1, 2008 based on FMSA methodology while minimum requirements are 5% and 10% respectively.
"We believe that it was an appropriate decision by the Government to provide funding to the economy not only through state-owned development institutions, but also through commercial banks. It will compensate for the credit shortage in the domestic market and improve access to finance for companies and individuals during the global financial crisis",- said Ms. Zhussupova.
This initiative of the Government follows earlier measures to strengthen the Kazakh banking sector, which included an increase in the guaranteed amount of retail deposits from KZT 700 thousand to KZT 5 million, covering 99% of all retail deposits in the country according to FMSA calculations.
The placement of shares will be conducted fully in line with the requirements of the Law on Joint Stock Companies and will require an approval by the Board of Directors and a General Shareholders’ Meeting. The bank will comply with all requirements of the Kazakh Stock Exchange and the London Stock Exchange.
The Government intends to invest into the bank’s capital for a limited time period as a strategic partner and in full compliance with requirements of the legislation and rights of other shareholders. It is expected that the shares will be sold by the Government on market terms once global financial markets conditions improve.
The number of shares in the new offering, participation of a Government representative in the Board of Directors and other details of the transaction will be discussed with the Government during further negotiations. The time frame for the transaction will depend on completion of standard procedures, including holding the General Shareholders’ Meeting and placement of new shares.
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