Bank TuranAlem Of Kazakhstan Plans RUR7Billon Bond Issue

Bank TuranAlem CEO Saduakas Mameshtegi disclosed that it intends to issue RUR7 billion 4-year bonds in Russia by July. Earlier it planned a RUR3 billion 5-year bond issue and a RUR4 billion 60-year issue on the Moscow Interbank Currency Exchange. Mameshtegi explained that BTA intends to issue US$1.5 billion Eurobonds this year and to attract a US$1 billion to US$1.5 billion syndicated loan.

Until now, the bank had already issued RUR3 billion bonds maturing in 2009. The CEO also disclosed the bank's expansion plans. According to Mameshtegi, BTA wants to increase its branch network rather than buy new banks in Russia. Currently, the bank has representative offices in Russia, Ukraine, Belarus, Kyrgyzstan, Georgia, Tajikistan and Armenia. It also cooperates with four partner banks in Moscow, Astrakhan, Kazan and Omsk . BTA is the second largest bank in the country in terms of assets, which reached US$7.4 billion as of Jan. 1. The bank's net profit in 2005 doubled and made up US$110.7 million according to IFRS.