Almaty, Kazakhstan, 2 April 2008—
IFC, a member of the World Bank Group, today announced that it will provide a seven-year loan to JSC Bank Caspian to support the bank’s lending to small and medium enterprises in Kazakhstan. In addition to the $80 million investment, IFC will extend a $20 million one-year trade line to the bank.
The investment will enable Bank Caspian to continue its strategy of lending to entrepreneurs throughout Kazakhstan during a period when credit has become more costly and less available for borrowers globally.
Mikhail Lomtadze, Chairman of the Management Board of JSC Bank Caspian, said, “We are very pleased to enter this partnership with IFC. Despite challenging market conditions, our ability to raise long-term financing from leading international financial institutions serves as recognition of the transparency and quality of our operations. As we work toward building the best retail bank in Kazakhstan and Central Asia, IFC’s financing will enable us to increase our presence among small and medium enterprises, a strategic segment.”
Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said, “SMEs are vital for sustainable development and job creation in Kazakhstan, but they have limited access to long-term funding or to credit. With this loan to JSC Bank Caspian, IFC will improve access to finance for local entrepreneurs and contribute to the country’s development.”
Bank Caspian, a universal bank, was Kazakhstan’s eighth-largest bank in terms of assets at the end 2007. It is also a traditional supplier of credit to the retail and trade sectors of the economy.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
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