Kaspi Bank plans to float 20 billion bonds by the end of 2011
ALMATY. Oct 3 (Interfax) - Kazakhstan's Kaspi Bank plans to float long-term domestic bonds for a total of 20 billion tenge (147.99/$ 1) by the end of 2011, said Mikhail Lomtadze, the chair of the bank's management board.
"We have already registered the bond program, and as soon as the interest arises, we will offer them right away," he said at a press conference in Almaty on Monday.
Lomtadze noted that the bank plans no borrowings. "As for the funding, that's where the credit/deposit rate comes in. We are fully financed by deposits. (...). From the perspective of capital markets, we do not have any solid plans yet," he added.
Kaspi Bank plans to place two bond issues within its bond program.
The 10 billion issue of registered coupon-bearing subordinated bonds has a 10-year maturity with an 11% fixed coupon rate in the first year and a floating rate - "inflation + 1% per annum" for later periods.
Another 10 billion issue of registered coupon bonds with a five-year maturity has an 8% coupon rate per annum.
The bonds are issued without an underwriter to raise funds for increasing the bank's loan and investment portfolios.
In 2010 Kaspi Bank was ranked 79th by assets among the CIS banks and 8th among Kazakh banks, according to the Interfax-1000: CIS Banks ranking prepared by the Interfax Center of Economic Analysis.
Kaspi Bank is under control of Baring Vostok Capital Partner, a director investment fund that makes investments in the CIS and owns a 51% stake in Caspian Group B.V. (the Netherlands), which controls 95.57% of Kaspi Bank's shares. Vyacheslav Kim, a Kazakh businessman, owns a 49% holding in Caspian Group B.V.
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