Jsc Halyk Reg S Regulatory News (HSBK)

5 Jun 2009 12:45



5 June 2009

Successful finalisation of transaction on the Government's 

participation in Halyk Bank's capital 

Joint-stock company "Sovereign Wealth Fund "Samruk-Kazyna" (the "Fund") and JSC "Halyk Bank" ("Halyk Bank" or the "Bank") successfully finalised transaction on placement of 196,232,499 preferred shares of the Bank to the Fund for KZT 33 billion. 

Thus, the Bank's capitalisation program has been completed within the time frames set by the Government's Plan of Measures on providing support to the banking sector. The funds under the program of refinancing small and medium enterprises, mortgages and real sector of the economy for the total amount of KZT 95.7 billion are also utilized in an efficient manner. In total, Halyk Bank disbursed more than 90%, or more than KZT 140 billion, of the funds allocated by the Government for stabilization of economy within realization of anti-crisis measures.

Umut Shayakhmetova, Chairperson of Halyk Bank highlighted: "According to the terms of agreements signed with the Government and the Fund, the Bank's capitalization has been executed in 2 stages. The first stage was completed on 27 March 2009 when the Fund purchased 20.9% of the Bank's common shares for KZT 27 billion. The second stage was finalised after the additional placement of 196,232,499 preferred shares at KZT 168.4 per share on 29 May 2009. Both instruments are treated as Tier 1 capital which increased by KZT 60 billion as a result of the transaction. The Bank's regulatory capital grew by 26% since the beginning of the year. This considerably increases our opportunities on the banking sector, including lending to the economy. Thus, currently Halyk Bank is one of the most capitalised banks in Kazakhstan. We are confident that the Government's participation in the Bank's capital would contribute to further strengthening of trust from the Bank's clients and partners as well as the Bank's positions on the financial sector of Kazakhstan."

Placement of common and preferred shares by the Bank has been conducted in compliance with all requirements under Kazakhstan law (including requirements related to pre-emptive purchase rights of the existing shareholders and GDR holders), terms and conditions of the Bank's international agreements and listing rules of London Stock Exchange and Kazakhstan Stock Exchange.

After finalization of transaction on the Fund's participation in Halyk Bank's capital, Holding Group ALMEX JSC (parent company of Halyk Bank) retains control over the Bank with 54.1% of the Bank's common shares. The Fund will not interfere in operational activities of the Bank and plans to act as a shareholder within a limited period of time. In this connection, Holding Group ALMEX JSC has the right to buy back common and preferred shares placed to the Fund during a five-year period. 

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. 

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