KazInvestBank - Equity Investment

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The proposed project is designed to provide capital to support KIB’s growth strategy, including the bank’s regional expansion plans and the development of its retail and SME lending operations. The project will provide KazInvestBank with capital and financial resources needed for implementation of the bank’s medium-term strategy with a particular focus on regional expansion and lending to private sector SMEs and retail clients. Participation of EBRD in the bank’s capital is expected to further strengthen its corporate governance, organisational structure, policies and procedures. In addition it should enhance the bank’s profile in terms of attracting local and international commercial funding. KazInvestBank (“KIB”) is a mid-size bank in Kazakhstan with total assets of USD 198.9 million and total Tier 1&2 capital of USD 45.6 million as of 31 December 2006. An equity investment by subscribing to newly-issued ordinary shares of KIB constituting up to 20% of the bank’s total capital and voting rights. tbc KazInvestBank will be required to adopt the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks and to apply these procedures to the whole range of its commercial lending operations. This includes adherence to the FI Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety and labour legislation, appointment of a member of senior management with overall responsibility for the implementation of environmental procedures, and submission of annual environmental reports to EBRD. None. Ms. Assel Kenchenbayeva, Head of FI Tel: +7 327 2619079 Fax: +7 327 2598658 E-mail: akenchenbayeva@kib.kz Website: www.kib.kz