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Tsesnabank Raises Nearly 4 bln Tenge through Bond Placement

Thursday 1 November 2012

Almaty (Interfax-Kazakhstan) – The Kazakh commercial Tsesnabank has floated 4.199 billion bonds on the Kazakhstan Stock Exchange (KASE), KASE said in a statement.

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According to the KPMG audit on the consolidated statement of financial position as at 31 December 2011, the Tsesnabank JSC’s operations are primarily located in Kazakhstan. Consequently, the Group is exposed to the economic and financial markets of Kazakhstan which display characteristics of an emerging market. The legal, tax and regulatory frameworks continue development, but are subject to varying interpretations and frequent changes which together with other legal and fiscal impediments contribute to the challenges faced by entities operating in Kazakhstan. The consolidated financial statements reflect management’s assessment of the impact of the Kazakhstan business environment on the operations and the financial position of the Group. The future business environment may differ from management’s assessment.

“The amount raised by the bank made 3.971 billion tenge,” the stock exchange said. The Wednesday exchange rate was 150.66 tenge /US $1.

Tsesnabank auctioned off 4.199 billion bonds or 70% of its total number of registered seven-year bonds. The face value of one bond is 1 tenge. The circulation period is 7 years. The six-month coupon rate is 8%.

Three KASE members participated in the auction and made 6 bids buying all of the bonds. The issue is third as part of Tsesnabank’s third bond program, which started on August 10, 2011. The program is worth 100 billion tenge. This is also the 13th issue of internal bonds by Tsesnabank.

Tsesnabank’s key strategic goal for 2012-2016 is to strengthen its positions in the banking services market while improving its main performance indicators and maintaining the Bank’s profile of a universal bank with several business lines: corporate, SME and retail.

Founded in 1992, Tsesnabank is owned by Tsesna Corporation, a largest investment company in Kazakhstan. The majority shareholder of Tsesna Corporation is Kazakh Defense Minister Adilbek Djaksybekov.

In 2011 Tsesnabank was ranked 8th by assets among the 38 second-tier banks operating of Kazakhstan by the State Financial Supervision Committee of the National Bank. In June 2011, Standard & Poor’s upgraded the long-term credit rating of Tsesnabank to B from B- on above-average resilience to crisis.

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