Kazakhstan Development Bank will increase its equity by USD 52mn, the bank shareholders decided, the bank press service informed. The funds will be raised through sale of new float of shares to government and attraction of a budget credit worth USD 28.6mn.

Earlier President Nazarbayev in his annual address to nation, recommended the government to hike the financing volumes of the bank. The bank was set up in 2001 with equity of USD 200mn for long-term financing of large projects in priority sectors of economy. The regional administration bodies and government are the only shareholders of the bank.

It should be mentioned that S&P has recently upgraded long-term issuer credit and senior unsecured debt ratings of Kazakhstan Development Bank up to BB+ from BB. S&P pointed at importance of the bank for the country as well as its full ownership by the government resulting in strong state support.

The bank net profit was registered at USD 13.4mn in 2002, or 2.6 times more y/y. The bank assets amounted to USD 378mn, or 2 times more y/y. The bank extended credits worth USD 77mn whereas the bank extended no financing in 2001. In year 2003 the bank plans to earn the same net profit as last year.

(IntelliNews 14.vii.03)