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| Description of company and purpose of project |
Citibank Kazakhstan (CK, or the bank) is a fully licensed commercial bank. It offers to its resident and non-resident clients a complete range of banking products for domestic and cross-border operations in both Kazakh tenge and foreign currencies. CK has been based in Kazakhstan since 1994 and was fully incorporated in on May 12, 1998. As of December 31, 2002, the bank’s total assets stood at $349.8 million equivalent and the total capital equaled $54.8 million equivalent including the subordinated debt.
The project involves the provision of long-term funding of up to $20 million to the Bank to support the expansion of its mid-term lending operations. Through this loan IFC will enhance the supply of much-needed finance to the local private sector. With the increased economic activity in Kazakhstan over the last two years, due to favorable oil prices and a stable economy, there is undoubtedly a substantially increased demand from companies for longer term financing. The proposed investment is therefore intended, although in a small way, to address this demand. A secondary benefit is that it will increase competitiveness in the country's banking system |
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| Project sponsor and major shareholders of project company |
| Citibank Kazakhstan is 100 per cent owned by Citibank Overseas Investment Corporation of the United States. |
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| Total project cost and proposed IFC investment |
| The proposed IFC investment is $20 million for IFC’s own account. |
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| Location of project and description of site |
| The bank is headquartered in Almaty, Kazakhstan. |
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| Project Development Impact and IFC's Role |
The project will have a major impact on two areas that are critical for development in Kazakhstan:
- Availability of term financing for long-term projects. The project's principal development impact is its direct contribution in addressing Kazakhstan’s critical constraint to future sustainable economic growth. Furthermore, the proceeds of the loan will be on-lent to private sector companies which will contribute to the potential job creation.
- The development of competition in the banking sector.
IFC’s loan would help extend the maturity of CK’s funding base, enabling the bank to provide longer-term and affordable funds for corporate borrowers. |
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| Environmental and social issues - Category U |
This is an environmental and social review category FI type 2 project. The bank will be required to demonstrate that its environmental management system is adequate to address the projects finance under the loan.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
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| To contact the project company, please write to: |
CJSC
Citibank Kazakhstan
Park Palace, Building A, 2nd Floor,
41 Kazibek bi Str.
Almaty, 480100,
Kazakhstan |
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