Jsc Halyk Reg S Regulatory News (HSBK)

30 Oct 2008 16:07



30 October 2008

Initial discussions on strategic partnership 

with the Government of the Republic of Kazakhstan 

and the National Wealth Fund SamrukKazyna

At the beginning of this week the Government of the Republic of Kazakhstan and the National Wealth Fund SamrukKazyna (SamrukKazyna) initiated preliminary discussions with the Joint Stock Company 'Halyk Savings Bank of Kazakhstan' (Halyk Bank) (LSE: HSBK) to create a strategic partnership in order to support the growth in the real sector of the economy. 

In its press release published on 29 October 2008, the Government highlighted the role of Halyk Bank as one of Kazakhstan's systemically important banks. Thanks to its strong balance sheet, favourable funding structure and adequate level of provisions and capitalization, Halyk Bank has not participated in the Government's banking sector support programs in the past. However, it welcomes the Government's initiative aimed at strengthening the country's economy and appreciates the opportunity to work with SamrukKazyna not only as a client but also as a strategic partner.

The Government and SamrukKazyna indicated that the amount of around US$500 million will be provided to Halyk Bank in the form of newly issued common shares limited to 25% participation in Halyk Bank's equity and a mutually agreed number of preferred shares. The capital increase will be conducted in accordance with the provisions of the Law "On Joint Stock Companies" and the current legislation of the Republic of Kazakhstan as well as the Listing Rules of the Kazakhstan Stock Exchange and London Stock Exchange and will be subject to approval by the Board of Directors and the General Meeting of Shareholders. SamrukKazyna will act purely as an investor and will not be involved in the day-to-day operational matters of Halyk Bank's business. It is expected that SamrukKazyna will hold the equity stake in Halyk Bank for a mutually agreed, limited period of time. 

Halyk Bank expects to shortly receive a formal written proposal from SamrukKazyna and further discuss the details of the strategic partnership and the capital increase. Halyk Bank will seek approval of its respective constitutive bodies including the Board of Directors and the General Meeting of Shareholders.

Halyk Bank will update the investor community on further developments in due course.   

About Halyk Bank

Halyk Bank is one of Kazakhstan's leading financial services groups and a leading retail bank with the largest customer base and distribution network among Kazakhstan banks. The Bank is developing as a universal financial group offering a broad range of services (banking, pensions, insurance, leasing, brokerage and asset management) to its retail, small and medium enterprises and corporate customers. Halyk Bank is rated by the three main rating agencies: Moody's Investor Service (Ba1), Fitch Ratings (BB+) and Standard&Poor's (BB+). As at 30 June 2008, Halyk Bank had 723 outlets, 1,660 ATMs and 3,848 POS terminals.