Almaty, Kazakhstan, April 29, 2003—
The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, has signed a $10 million loan agreement with ABN AMRO Bank Kazakhstan, one of the leading banks currently operating in Kazakhstan. The loan will help expand the availability of critically lacking term financing to productive enterprises in the country. As the Kazakh economy is growing and the size of local companies is expanding, it has becoming increasingly difficult for banks to meet the necessary financing needs of these companies.
“By providing tier-II capital support and expanding the bank’s overall equity, the project will enable ABN AMRO Bank Kazakhstan to increase its term lending not only to the existing clients but also and more importantly to provide funding to the new Kazakh clients,” said Mr. Karl Voltaire, IFC’s Director for Global Financial Markets.
ABN AMRO Bank Kazakhstan was established in 1994 as a joint-venture with ABN AMRO N.V. (51%), Kazkommertsbank (29%), and IFC (20%). ABN AMRO’s technical input and global perspective combined with Kazkommersbank’s local market knowledge and IFC’s emerging markets expertise and its role as neutral broker has contributed to the success of this venture. ABN AMRO Bank Kazakhstan was an early leader in bringing good banking practices to Central Asia. It is often cited as a model for other banks to emulate because of its performance, the integrity in conducting business, and the dedication of the staff to provide the highest quality of service.
Mr. Khosrow Zamani, IFC’s Director for Southern Europe and Central Asia, said, “We are very pleased to be associated with a project which contributes to the country’s efforts to support the development of financial markets and institution-building of financial intermediaries in Kazakhstan. This project is a demonstration of IFC’s commitment to help Kazakh banks realize growth opportunities through partnerships, transparency, and good corporate governance.”
Mr. Jan Willem van den Bosch, Chairman of the Board of ABN AMRO Bank Kazakhstan, commented, “As one of the most active banks in Kazakhstan, ABN AMRO Bank Kazakhstan further cements its strong ties with IFC and provides vital term funding to growing Kazakh businesses. This facility enables us to strengthen our competitive position in the Kazakh market, and we look forward to future possible partnerships with IFC in the country.”
Netherlands-based ABN AMRO N.V. (
www.abnamro.com
) is one of the world’s largest banks, with total assets of more than EUR 600 billion and with more than 175 years of experience in intermediating and financing global commerce. ABN AMRO’s activities are grouped into three strategic business strategic units: Wholesale Clients, which provides integrated corporate and investment banking services to corporations, financial institutions, and public sector clients worldwide; Consumer & Commercial Clients, which focuses on retail and small and medium-size enterprises in a number of core markets; and Private Clients & Asset Management, which focuses on private banking and fund management.
IFC has worked actively to support the development of a strong private sector in Kazakhstan since it became a member of the Corporation in 1993. IFC has approved investments for its own account of over $400 million as well as over $270 million from other sources of financing.
IFC’s mission 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, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $34 billion for its own account and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was $15.1 billion, with an additional $6.5 billion held for participants in loan syndications. For more information on IFC, please visit www.ifc.org.
