Tag Archives: banking

Armenia’s Ameriabank aims for London IPO within 2 or 3 years

JAN. 21 2016 (The Conway Bulletin) — Ameriabank, Armenia’s largest bank, said it wants to list its shares on the London stock exchange, after it received an investment of around $100m from international lenders, including the EBRD and the World Bank’s IFC.

If Ameriabank does list on LSE, it would be the first Armenian bank, or company even, to be publicly traded on a Western stock exchange. In the South Caucasus it would be the second publicly traded bank after Bank of Georgia.

Ameriabank’s chairman Andrew Mkrtchyan said the bank plans an IPO in the next two or three years.

“Our aspiration is an IPO (initial public offering) and to try to triple our balance sheet in the next three years,” Mr Mkrtchyan told Reuters.

The EBRD said it paid $30m for an equity stake of around 20% in Ameriabank and has pledged an additional $10m for the bank’s asset growth.

“This is the largest single-ticket equity deal the EBRD has signed in the region to date,” the EBRD said in a statement.

By becoming a shareholder, the EBRD has committed to growing the bank in Armenia.

“As a shareholder the EBRD will support Ameriabank’s development, with a special emphasis on corporate governance,” Mark Davis, head of the EBRD Yerevan office, said.

The World Bank’s IFC also provided Ameriabank with a $50m loan to increase its lending capacity.

For Armenia, the investments by the EBRD and the IFC are a vote of confidence in its banking sector and are especially important at a time when currencies and economies in the region are depreciating or falling back on earlier growth spurts.

For foreign investors, an Ameriabank IPO would give them a chance to buy into an Armenian corporation for the first time.

ENDS

(News report from Issue No. 264, published on Jan. 22 2016)

Kazakhstan’s Tsesnabank makes Russia deal

JAN. 13 2016 (The Conway Bulletin) — Tsesnabank, one of the largest banks in Kazakhstan, bought an 83% stake in Russian Plus Bank, after both countries’ Central Banks gave the green light for the deal. According to Russian law, Tsesnabank will have to submit another offer for the remaining 16.7% of Plus Bank over the next days. UAE-based Linex Global owns 14.7% of Plus Bank. Tsesnabank has increased its stake over the past six months. In June 2015, it owned 20% of Plus Bank. It has since bought out several other minority shareholders. Adilbek Dzhaksybekov, mayor of Astana, owns Tsesnabank.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Kazakh mortgage holders protest

JAN. 12 2016, ALMATY (The Conway Bulletin) — Around 100 people demonstrated in Almaty, Kazakhstan’s financial capital, over the rising cost of servicing US dollar mortgages, an indicator of growing discontent over the worsening state of the Kazakh economy.

The protesters targeted two banks — ATF and Forte Bank — which they said were refusing to help homeowners with US dollar mortgages despite a 50% drop in the value of the Kazakh tenge. They carried a symbolic coffin filled with underwear and ripped up mortgage statements.

Sulubike Zhaksylykova was on the march. She is head of an NGO which is lobbying for banks to help mortgage owners.

“One of the main goals of the protest is to refinance mortgages in dollars according to people’s ability to pay,” she told The Conway Bulletin.

“There are many disabled people of first and second category who receive 26,000 tenge per ($71) month [of government benefits] and these banks require them to pay 100,000 tenge a month [in mortgage repayments].”

The Kazakh government last year released a 130b tenge ($355m) cash-pot which it handed to commercial banks to help them refinance homeowners’ mortgages. Ms Zhaksylykova, though, accused the banks of not doing enough to help people.

After the protest both ATF Bank and Forte Bank said they would work to improve individual mortgage repayments.

Public protests in Almaty are rare but as the economy worsens, emotions are running high.

The Kazakh economy has always had relatively high levels of household debt and after the Global Financial Crisis of 2008/9, Kazakhstan had one of the highest proportions of non-performing loans.

Analysts have now warned that bad mortgages may be the source of another debt crisis.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Kazakh businessman ups Kazkom stake

DEC. 29 2016 (The Conway Bulletin) — Kenes Rakishev, son-in-law of Kazakh defence minister Imangali Tasmagambetov, became the majority shareholder in Kazakhstan’s largest bank, Kazkommertsbank, after he completed his purchase of investment group Alnair Capital Holding, media reported. Mr Rakishev will now own, directly and through Alnair, 56.75% of Kazkommertsbank. Alnair had been linked to the Kazakh elite.

ENDS

(News report from Issue No. 262, published on Jan. 8 2016)

Kazakh businessman buys controlling stake in BTA Bank Ukraine

DEC. 11 2015 (The Conway Bulletin) — Ukraine’s Antimonopoly Committee gave permission to Kazakh businessman Kenes Rakishev to buy a majority stake in BTA Bank Ukraine, strengthening his control over Kazakhstan’s banking assets.

One day before disclosing Mr Rakishev as the mystery buyer, the Ukrainian regulator said it had given the green light to a citizen of Kazakhstan to buy the 50.007% stake in BTA Bank that Kazkommertsbank, Kazakhstan’s largest lender, didn’t already own.

Kazkommertsbank and Mr Rakishev completed the takeover of BTA Bank in Kazakhstan earlier in 2015.

This takeover deal, though, only concerned the Kazakhstan-based parent company. BTA Group also owns banks in Russia, Belarus, Georgia, Armenia, Turkey and Ukraine.

Now, Mr Rakishev will control BTA’s subsidiary in Ukraine, buying it from Andryi Levkovsky, a Ukrainian businessman linked to several investment companies.

The 36-year-old Mr Rakishev is the son-in-law of Kazakhstan’s powerful defence minister Imangali Tasmagambetov and is considered a member of the country’s most inner clique of elite.

BTA Bank Ukraine’s results in the first three quarters of the year were positive. Net income grew by 30% to $119,800, making the bank a small player in Ukrainian market. The bank’s total assets amount to 2.8b hryvnia ($120m).

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Kyrgyzstan CBank changes rules

DEC. 9 2015 (The Conway Bulletin) – Kyrgyzstan’s Central Bank changed the reserve requirements for its commercial banks to reflect the less stable state of the Kyrgyz som. It reduced the proportion of minimum reserves held in som by 4.5% to 4% of a bank’s total reserves and also increased the requirement to keep 12.5% of the bank’s cash in foreign currency, up 2.5%.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Kazakh investor to buy BTA Ukraine

DEC. 10 2015 (The Conway Bulletin) — Ukraine’s Antimonopoly Committee said it gave permission to an unnamed private investor from Kazakhstan to buy 50% of BTA Bank Ukraine. BTA Bank in Kazakhstan owns 49.9% of BTA Bank Ukraine. The rest of the shares are indirectly owned by several murky Ukrainian investment companies.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Ratings agencies warn Kazakhstan that NPLs are worsening

DEC. 7/10 2015 (The Conway Bulletin) – Ratings agencies Standard & Poor’s and Fitch said that worsening economic conditions in Kazakhstan threaten to generate bad debt that could drag down the banking sector.

The warnings add to the mounting analysis which suggest that the initial impact of low oil prices and a recession in Russia were underestimated. Last week the World Bank said that the Kazakh economy would grow by its lowest rate since the 1990s.

Specifically Standard & Poor’s downgraded the rating of Almaty-based Eurasian Bank to B from B+ because of an increase in its non- performing loan portfolio.

“The level of non-performing loans increased to 11.1% of total loans on Nov. 1, 2015 from 7.5% on Jan. 1, 2015,” it said in a statement.

Non-performing loans are those which are more than 90 days overdue.

After the Global Financial Crisis of 2008/9, Kazakhstan’s banks held portfolios with the largest proportion of non-performing loans in the world. It had managed to reduce this before the onset of the current economic malaise.

But the current economic problems have slowed this recovery.

Similarly to the World Bank last week, Fitch said the Kazakh economy would grow by just 1% this year.

“Medium-term prospects for Kazakhstan’s banking system have deteriorated in 2015 due to lower oil prices, the economic slowdown (especially in non-extractive sectors) and the weaker tenge,” it said in a statement.

Unlike the World Bank, though, it did say the recovery would be quicker and that the Kazakh economy would grow by 2.3% in 2015, compared to a World Bank estimate of 1.1%.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Armenia’s Armeneconombank and BTA merge

DEC. 8 2015 (The Conway Bulletin) — Armenia’s Armeneconombank said it intends to merge with BTA Bank Armenia. The two companies signed a memorandum of understanding in Almaty, confirming the deal. The European Bank for Reconstruction and Development owns 20% of Armeneconombank. Kazakhstan’s BTA Bank owns 65.2% of BTA Bank Armenia. BTA Bank, in turn, is owned by Kazakhstan’s Kazkommertsbank.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Kazakhstan’s DevBank and Al Hilal sign agreement

DEC. 3 2015 (The Conway Bulletin) — The state-owned Kazakhstan Development Bank and Abu Dhabi-based lender Al Hilal signed an agreement on the development of Ijara, an Islamic banking financial instrument linked to leasing real estate. Earlier this week Kazakhstan’s Central Bank also said it is considering halving capital requirements for Islamic banks to 5b tenge ($16.2m).

ENDS

(News report from Issue No. 259, published on Dec. 4 2015)