Kazakhstan's Bank CenterCredit to repay remaining $56 mln in govt aid
ALMATY. Aug 6 (Interfax) - The board of directors of Kazakhstan-based Bank CenterCredit (BCC) has approved the repurchase of bonds worth 30 billion tenge or $55.8 million to repay the remainder if its government financial assistance, according to a statement published by the Kazakhstan Stock Exchange (KASE).
BCC will buy back unsecured, convertible, coupon-bearing subordinated bonds (CCV No. 29 - KASE, ISIN KZ2C00004083), which had been issued under a government program aimed at improvement of the financial stability of Kazakhstan's banking sector, at a nominal value of 1,000 tenge per bond on the bank's initiative to return the debt to the government, the statement says.
The exact number of bonds to be redeemed is 29,998,759.
In 2023, BCC received 60 billion tenge in state support, with repayment due by November 2032. However, the bank prepaid 20 billion tenge in late 2024 and an additional 10 billion tenge in April 2025. It now plans to settle the remaining 30 billion tenge.
Earlier, the bank's shareholder Bakhytzhan Bayseitov said in an annual report that BCC plans to complete the early repayment of state funds by 2026.
In April 2023, Kazakhstan's Agency for Regulation and Development of the Financial Market put restrictions on the payment of dividends for six financial institutions, Jusan Bank, Halyk Bank, Bank RBK, Eurasian Bank, Bank CenterCredit, and Nurbank, which had received financial assistance from the government. The resolution prohibited dividend payments from profits derived from public funds, aiming to incentivize banks to repay their government debt before maturity. During a government meeting at the beginning of this year, Kazakh President Kassym-Jomart Tokayev called on local banks to reciprocate the support they received from the government by engaging in fair partnerships to finance key national projects. "Some banks have already recovered their losses but continue to hold state-owned funds. They are earning guaranteed profits by investing those funds in risk-free government instruments at high interest rates. The government and the National Bank are now responsible for addressing this situation," Tokayev said.
Bank CenterCredit (BCC), founded in 1988, serves individuals and legal entities. The major stakeholders of the bank are Bakhytbek Baiseitov (40.11%), the chairman of the BCC board of directors, and Vladislav Li (9.2%), a member of the board of directors.
BCC ranked third among Kazakhstan's 22 commercial banks by assets as of July 1, according to the National Bank.
