OREANDA-NEWS  On 06 November was announced, that BTA Bank, Kazakhstan’s largest bank, intends to include the Kazakhstan Government offer for National Welfare Fund Samruk-Kazyna (Samruk-Kazyna) to invest in BTA Bank’s share capital in the agenda of the next general meeting of BTA Bank’s shareholders.

The additional capital stemming from Samruk-Kazyna’s investment would be raised through the issue of ordinary shares in an amount up to 25% of BTA Bank’s share capital, preferred stocks and/or subordinated bonds. These measures could result in an increase in BTA Bank’s capital of up to USD 2.3 billion.

"BTA believes that additional investments into the bank’s capital will have a positive effect on the stabilization of the national banking system, and support greater lending to Kazakhstan businesses and the general public." - said Mr. Mukhtar Ablyazov, Chairman of the Board of Directors of BTA Bank – "With a 30% market share of corporate loans, BTA Bank is Kazakhstan’s largest corporate lender."

Notwithstanding the deteriorated conditions on the global capital markets, BTA Bank has maintained its leading position in Kazakhstan, demonstrating stable growth of all key indicators: In the first 9 months of 2008, BTA Bank’s (i) assets grew by 16.4%, (ii) equity capital grew by more than by 6%, (iii) customer deposits grew by by 42.2%, (iv) loans grew by 11%, and (iv) current accounts grew by 45.4%.

As already announced, Samruk-Kazyna’s proposed purchase of share capital in Kazakhstan’s four major banks is intended to be a temporary measure. After the stabilization of the international financial markets, the Kazakhstan Government intends to sell its stakes in each of the respective banks. The terms and conditions for the transactions contemplated by the Government, including those related to the shareholder rights and obligations of Samruk-Kazyna will be finalized during bilateral negotiations with each bank.