Kazakhstan said to seek a sale of bailed out Alliance Bank stake to EBRD
Almaty. April 25. Kazakhstan Today - Kazakhstan plans to sell a stake in Alliance Bank to the European Bank for Reconstruction and Development, Kazakhstan Today reports.
Kazakhstan wants to sell a stake in Alliance Bank to the European Bank for Reconstruction and Development, potentially making it the first of the Kazakh banks that defaulted during the financial crisis to attract an international investor, said three people familiar with talks, Bloomberg reported.
An agreement on the sale may be reached as early as next month, said one of the people. The three people declined to provide details on the size of the stake or the price and asked not to be identified because the negotiations are private.
Alliance Bank, the first Kazakh lender to default in 2009, completed restructuring $4.5 billion of debt, reducing the amount owed to about $1 billion, the bank said on March 30 of last year. The state-owned National Wellbeing Fund Samruk-Kazyna holds 67 percent of Alliance's ordinary shares after the reorganization. Alliance is the country's sixth-largest lender by assets.
Samruk-Kazyna plans to consolidate state stakes in BTA Bank, Temirbank and Alliance Bank in a new management company, central bank Chairman Grigori Marchenko said on April 19. The three lenders defaulted in 2009 after credit markets froze and the country's property bubble burst.
Alliance Bank narrowed its loss by almost 96 percent to 2.25 billion tenge ($15.5 million) in the first two months from 50 billion tenge in the same period last year, the Kazakh financial regulator said in March, citing unconsolidated data under Kazakh accounting standards.
"Alliance Bank is in talks with a potential investor," Dmitry Shishkin, a spokesman for the Almaty-based lender, said today by phone, declining to name the buyer. Evgenia Evstegneeva and Tatyana Tyo, EBRD officials in Almaty, both declined to comment when called by Bloomberg News.
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The Head of State has identified deep processing of hydrocarbons as one of the key areas of development of the oil and gas sector. The priority for our economy is high conversion production producing products with a rapid increase in added value in the technological chain with an export orientation. The added value between the initial feedstock ethane and the third conversion product polyethylene increases 20 times, from $80-90 to $1600-1800 per tonne. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country's economy as a whole. According to experts' calculations, the contribution to the country's GDP by 2030 from the implementation of the project is estimated at approximately 1.2%," Olzhas Bektenov said.
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