Almaty, September 22, 2005
-- The International Finance Corporation, the private sector arm of the World Bank Group, has signed an agreement to provide a long-term loan of $5 million to BTA ORIX Leasing.
BTA ORIX Leasing is a joint venture between Kazakhstan’s second largest bank, Bank Turan Alem; ORIX Corporation of Japan, the largest Japanese leasing company; and ORIX Leasing Pakistan. IFC is a minority shareholder in the joint venture.
The IFC loan will provide BTA Leasing with much needed term funding to meet the rapidly growing demand of long-term asset acquisition in one of the fastest growing emerging markets. The loan will help BTA Leasing better meet the financing needs of small and medium enterprises—a vital engine of economic growth in developing countries—and consolidate its position as one of Kazakhstan’s leading leasing companies.
Shahbaz Mavaddat, IFC’s acting director of Southern Europe and Central Asia, said, "One of our main objectives in Kazakhstan is to help specialized financial institutions like BTA Leasing provide a better service to small and medium enterprise clients. The IFC loan will assist in the development of the emerging small and medium business sector in Kazakhstan by increasing the availability of credit to existing and new businesses.”
Jyrki Koskelo, IFC’s director of Global Financial Markets, said, “IFC has had a strong institution-building role in the development of Kazakhstan’s financial markets. IFC’s long-term loan and the recent equity investment in BTA Leasing will help deepen and diversify the financial sector in this country.”
Lazzat Assabayeva, BTA Leasing’s chief executive officer, said, “BTA Leasing is extremely pleased to partner successfully with IFC. The confidence placed in us by IFC demonstrates the strong position of BTA Leasing and allows us to further develop the leasing market in Kazakhstan. We look forward to continuing our good cooperation with IFC.”
The International Finance Corporation is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. For more information, visit
www.ifc.org
.
