BTA Leasing

completed

BTA Leasing (BTAL) was established in 2000 and is currently a wholly owned subsidiary of Bank Tura Alem (BTA), one of the leading private banks in Kazakhstan in which IFC is a 3.2% shareholder. Headquartered in Almaty with 23 employees, BTAL is the first commercial leasing company in Kazakhstan, with paid-in-capital of $2 million and a current market share of 10%. At end-2003, it had total assets of $11.3 million, and shareholders’ equity of $2.2 million. More information is provided at BTAL’s website: http://www.leasing.kz. The project comprises of the following components:- an IFC equity investment of up to $1.2 million equivalent for 10% shareholding in the expanded share capital of BTAL; and - an IFC senior loan of up to $5 million to BTAL with a tenor of six years. This project is intended to strengthen BTAL’s capital base, and strengthen BTAL’s institutional capacity and expand its leasing operations, particularly to Small and Medium Enterprises. The proposed IFC loan will provide much needed term funding to BTAL and improve the maturity matching of BTAL’s balance sheet. ORIX Corporation (ORIX) of Japan and ORIX Leasing Pakistan (OLP) will be the foreign strategic and technical partners to co-invest with IFC.After the proposed investment, BTA’s shareholding in BTAL will be reduced to 45%. ORIX and OLP will take a combined shareholding of 45%, with IFC taking the remaining 10%. Both ORIX and OLP will be actively involved in the management of BTAL. ORIX and OLP will nominate members on the Board of BTAL, and OLP will second about two experienced managers to participate in the day-to-day management of BTAL. IFC is also expected to nominate a Board member.