IFC to take 12.5-percent stake in Bank CenterCredit

business and economy

IFC to take 12.5-percent stake in Bank CenterCredit

By SRI ⋅ September 30, 2009 ⋅

(SRI) - Bank CenterCredit (BCC) said in a press release on Monday that the International Finance Corporation (IFC), the private equity arm of the World Bank, will take a 12.5-percent equity stake in the bank and provide a subordinated loan of $85 million.

At the same time, South Korean Kookmin Bank will increase its stake in the bank from 30.6 percent to 40.1 percent, as the Korean bank indicated earlier. The transactions are to be a combination of new and existing shares. IFC had previously extended two senior loans and a trade finance line to the Bank.

The funds are expected to be used to address the financing needs of small and medium enterprises in Kazakhstan.

“BCC is a key partner for IFC in addressing the financing needs of small and medium enterprises in Kazakhstan, which are vital for private sector development,” said Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, in a statement.

BCC is Kazakhstan’s fifth largest bank by assets, with eight percent of the banking system’s total assets and 14.4 percent of retail deposits.