OREANDA-NEWS. September 30, 2009. IFC, a member of the World Bank Group, announced today it will invest in JSC Bank CenterCredit, providing long-term capital that will help promote access to finance for small and medium enterprises in Kazakhstan, reported the press-centre of Bank CenterCredit.

IFC will invest in a 12.5 percent equity stake alongside local shareholders and the strategic investor Kookmin Bank of South Korea, which will increase its stake from current 30.5 percent to 40.1 percent and more, and provide an US85 million subordinated loan. IFC has previously extended two senior loans and a trade finance line to BCC, a medium-sized bank that focuses on small and medium enterprises.

“This important alliance with IFC and Kookmin Bank will allow BCC to strengthen its positions  in the local market,” said Vladislav Lee, Chairman of BCC’s Management Board.

“BCC is a key partner for IFC in addressing the financing needs of small and medium enterprises in Kazakhstan, which are vital for private sector development,” said Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia. ““IFC is pleased to provide continued support to an existing client under challenging conditions in international financial markets.”

BCC is the fifth largest bank in Kazakhstan in terms of total assets, holding eight percent of the banking system’s total assets and 14.4 percent of retail deposits. It provides a full range of banking products, including corporate loans mainly to smaller businesses and micro entrepreneurs, retail services, consumer loans, and mortgage finance.

Kookmin Bank is the largest bank in Korea with assets of US208.2 billion as of the end of 2008. It employs more than 25,700 staff and has five overseas branches, four subsidiaries, and three representative offices around the world. The bank provides standard banking, insurance, credit card, and investment products services.