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| ATF Bank |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27095 |
| Company name | JSC ATF Bank |
| Country | Kazakhstan |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Pending Disbursement |
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| Date SPI disclosed | April 17, 2009 |
| Projected board date | May 20, 2009 |
| Previous Events | Signed: September 30, 2009
Approved: August 13, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposed project involves providing a subordinated loan of up to $75 million to support the capital base of ATF Bank. |
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| Project sponsor and major shareholders of project company |
UniCredit Group (UCI) owns 99.8% of ATF through Bank of Austria, part of UCI. IFC successfully works with the Sponsor globally and in the region (e.g. in Serbia, Bulgaria, Turkey and Bosnia).
ATF was founded in 1995 as the Almaty Merchant Bank and renamed as ATF Bank in 2001. The Bank expanded its operations by organic growth and through acquisitions. ATF owns ATF Bank-Kyrgyzstan, second largest bank in Kyrgyzstan. ATF has traditionally had a strong corporate business and diversified into SME/retail after the acquisition. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment is a $75 million subordinated loan which would qualify as Tier II capital. |
| Location of project and description of site |
| ATF is headquartered in Almaty, Kazakhstan. |
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| Anticipated development impact of the project |
The successful implementation of this project will:
- enhance the Bank’s ability to access medium-term funding and on-lend funds to underserved sectors. Through increased access to finance, Kazakh entrepreneurs would be able to access to finance for continuing their activity. The SME sector is critical to support job creation where unemployment rate is increasing, and
- support the efforts of one of the leading banks in Kazakhstan to diversify its funding, and to better manage its asset and liability position and its capital adequacy at time of financial crisis in the economy. |
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| IFC's expected development contribution |
| IFC financing will strengthen ATF’s capital base with this subordinated loan which would qualify as Tier II capital. |
| Environmental and social issues - Category FI |
| For this Category FI project IFC's appraisal will focus on whether ATF Bank’s risk management systems and capacity are appropriate for performing the necessary social & environmental due diligence against the applicable performance requirements; and if the Bank’s labor practices are appropriate as reviewed against IFC’s Performance Standard 2: Labor and Working Conditions. Applicable performance requirements will include the IFC Performance Standards, the applicable National Social and Environmental Laws and regulations and the IFC FI Exclusion List. If required, IFC will suggest supplemental actions to address any gaps in the Bank’s risk management systems and capacity. |
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| For inquiries about the project, contact: |
Mr. Alexander Von Gleich, CFO
100, Furmanov str., 050000 Almaty
+7 727 2583 000
Email: AVGleich@atfbank.kz |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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