Kazkommertsbank announces results of its capital increase

Kazkommertsbank, one of the largest banks in Kazakhstan, announced on May 15 that it has sold 204,328,177 common shares through a capital increase that began on March 31 and a related placing. As a result of the capital increase, the bank’s share capital increased by KT44.47bn (US$296mn). The new shares were priced at US$1.45 per common share and US$2.9 per GDR (representing two common shares).
 
Nina Zhussupova, CEO of Kazkommertsbank, says: “Confirmation of the government’s participation as a shareholder in the bank through Samruk-Kazyna is good news for our shareholders and our clients. The major objective of our capital increase was to compensate for the shortage of credit available in the Kazakh economy, as well as to ensure the stable operation of the bank during the global financial crisis.”

165,517,241 common shares were purchased by Kazakhstan’s National Welfare Fund Samruk-Kazyna, which was previously not a shareholder, for an amount of KT36bn (US$240mn). The government’s fund is now holding a 21.2% stake after capital increase.

Samruk-Kazyna has become a shareholder of the bank for a limited period of time based on the terms and conditions of the agreements signed with the government at the beginning of the year. KKB says that Samruk-Kazyna does not participate in the day-to-day management of KKB.
 
KKB’s largest shareholders continue to control the bank, and Samruk-Kazyna has placed a portion of its common shares under the trust management of certain large shareholders with voting rights. As a result, Alnair Capital Holding, a unit of Alnair Private Equity Group, will have voting rights on 25% of KKB’s outstanding common shares, and CAIC, EBRD and N.S. Subkhanberdin (KKB’s chairman) jointly will have voting rights on 50% plus one share of the outstanding common shares.
 
Under this agreement, major shareholders (CAIC, N.S. Subkhanberdin, and Alnair) that did not take up their pre-emptive rights will have an option to buy the shares held by Samruk-Kazyna.
 
The capital increase was carried out in accordance with the current legislation of the Republic of Kazakhstan and the listing rules of the London and Kazakhstan Stock Exchanges, and in compliance with the pre-emptive rights of existing shareholders and GDR holders, as well as all relevant international agreements signed by the bank.
 
Kazkommertsbank is one of the leading banks in Kazakhstan, with total assets of KT2,614bn as at December 31, 2008 based on IFRS. The bank’s equity was KT314bn as at December 31, 2008. The bank’s total capital adequacy ratio is 17.7%, the highest figure among its Kazakh peers.

In 2008, Kazkommertsbank was selected by the Kazakh government as a partner in its stabilisation programme, under which the bank received KT124bn to refinance lending to its corporate clients as well as to refinance mortgage and SME loans.