Kaspi Bank SME/MSE Loan

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The proposed project envisages providing to Bank Caspian (“BC”) a KZT 7.2 billion senior unsecured loan for on-lending to local micro, small and medium enterprises (MSME loan). The project is designed to support Bank Caspian’s MSME lending programme with longer tenors than currently available in the market. The project transition impact includes the following key aspects: Provision of medium term local currency financing to match the underlying currency and maturity of the MSME sub-loan portfolio. Increased financial intermediation in favour of micro, small and medium sized enterprises which face difficulties in accessing long term finance, particularly those in rural areas. Transfer of skills via introduction of Credit Scoring Methodology for MSME lending. Bank Caspian is a universal mid-size bank with main focus on servicing micro and small enterprises, SMEs (collectively “MSMEs”) and individuals. The bank operates the third largest branch network in Kazakhstan, which makes it well equipped to serve MSMEs nationwide. BC is the ninth largest bank in the country with total assets and equity of USD 1.6 billion and USD 215 million respectively as of end 2006. A five-year senior loan of KZT 7.2 billion (EUR 46 million equivalent). KZT 7.2 billion. Bank Caspian will be required to comply with EBRD’s Environmental Procedures for Small and Micro Loans, including ensuring compliance with the applicable national environmental, health, safety and labor standards and regulations, adherence with EBRD’s Environmental Exclusion and Referral Lists and submission of annual environmental reports to the Bank. USD 150,000 TC funded by Japan under the Credit Scoring programme aimed to improve the efficiency of the bank’s MSE lending by introduction of Credit Scoring methodology. Ms Assel Baratova Head of Capital Markets, Financial Institutions Tel: + 7 3272 795626 Fax: +7 3272 509596 Email: Abaratova@bc.kz