Almaty, April 20, 2005
— The International Finance Corporation, the private sector arm of the World Bank Group, has signed an agreement to invest in the leasing subsidiary of Kazakhstan’s second largest bank, Bank Turan Alem, together with ORIX Corporation of Japan, the largest Japanese leasing company, and ORIX Leasing Pakistan. IFC will become a minority shareholder in the new joint venture, BTA ORIX Leasing.
The joint venture partners will provide institutional capacity building to expand BTA’s leasing operations. In addition, risk management and corporate governance will be strengthened through technical expertise from the ORIX group. These measures will help BTA meet private sector financing needs in a better way and consolidate its position as one of Kazakhstan’s leading leasing companies.
Khosrow Zamani, IFC’s director for Southern Europe and Central Asia, noted, "One of our main objectives in Kazakhstan is to help specialized financial institutions like BTA Leasing provide a better service to SME clients. IFC and its co-investors aim to ensure BTA Leasing’s sustainable business success and will provide broad support, including capacity building efforts and knowhow transfer.”
Jyrki Koskelo, IFC’s director for global financial markets, added, “IFC has had a strong institution-building role in the development of Kazakhstan’s financial markets. In strengthening one of the leading local leasing companies, we are continuing to support the country’s financial sector.”
BTA Leasing’s chief executive officer, Lazzat Assabayeva, said, “BTA Leasing is extremely pleased to partner successfully with IFC. We thank IFC for the confidence placed in us and look forward to continuing our good cooperation.”
ORIX Leasing Pakistan’s chief executive officer, Humayun Murad, added, “This is the ORIX group's first venture in the region with IFC and Bank Turan Alem. Kazakhstan is making tremendous economic progress and is ideally suited for the development of SME-oriented leasing, in which ORIX specializes.”
The mission of IFC (
www.ifc.org)
is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
