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| Description of company and purpose of project |
| BCC is a fast-growing second tier bank in Kazakhstan with a well-diversified and profitable operation. The Bank is based in Almaty and operates an extensive branch network throughout the country. As at June 30, 2005, the Bank had an equity base of approximately US$125 million and total assets of approximately US$1.66 billion. The project is intended to support this Kazakh bank’s rapid expansion of its SME and retail lending business through provision of equity, quasi-equity and/or Tier II capital. This is a follow-on transaction with BCC. In July 2005, IFC disbursed a senior loan of $10 million under its Central Asia Leasing Facility. |
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| Project sponsor and major shareholders of project company |
| BCC has a broad base of shareholders, including its founding directors and management. The Bank is controlled directly and indirectly by a group of private entrepreneurs who started the Bank in late 1980s. The Bank’s common shares are listed on the “A” List of the Kazakhstan Stock Exchange. The Bank has more than 700 shareholders including the local pension funds. |
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| Total project cost and proposed IFC investment |
| The proposed project includes an equity investment or a sub-loan of up to $20 million to BCC. |
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| Location of project and description of site |
| BCC is headquarted in Almaty and currently has 19 full service branches, 104 limited service branches, and 79 automatic-teller machines throughout Kazakhstan. The network covers 30 cities and settlement points across the Country. |
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| Project Development Impact and IFC's Role |
This project is expected to have the following developmental impacts:
Boost the capital of the Bank to enhance its institutional capacity and enable it to lend more to SMEs;
Through BCC, assist SMEs to expand existing operations by making longer-term credit available;
Help deepen the financial markets and stimulate competition in the financial sector by working with one of the best 2nd tier banks in Kazakhstan; and
Generate employment and sustainable growth through the resultant growth of SMEs.
IFC Role:
IFC’s association will provide greater credibility to BCC, which in turn would foster competition in the Kazakh financial sector and reduce the dominance of the three largest banks;
Should IFC become BCC’s shareholder, it would have an important impact on the Bank’s corporate governance and the Bank’s ability to attract other investors; and
IFC’s continued support to a successful Kazakh bank will demonstrate the importance IFC attaches to funding SMEs as well as viability of SME lending. |
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| Environmental and social issues - Category FI-1 |
This is a category FI Type 1 project according to IFC's environmental and social review procedure. For IFC's previous investment in BCC in 2005, BCC committed to establish an environmental management system to ensure that investments are consistent with applicable Kazakh environmental laws and regulations and IFC's microfinance exclusion list, designate appropriate individuals to be responsible for the environment and to attend IFC's environmental management workshop, and submit to IFC an environmental management plan and annual environmental performance reports. For this new investment, BCC will be required to follow through on all the commitments made for the previous investment.
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| To contact the project company, please write to: |
Timur Ishmuratov
Managing Director
International Department
Shevchenko Str., 050022, Almaty, Republic of Kazakhstan Tel: 7(3272) 598 549
E-mail: tishmura@centercredit.kz |
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