IFC and Kookmin Bank have teamed up to acquire a controlling stake in Kazakhstan's Bank Center Credit (BCC), providing long-term capital that will help promote access to finance for small and medium enterprises in Kazakhstan.
IFC will invest in a 12.5% equity stake alongside local shareholders and the South Korean strategic investor Kookmin Bank, and provide a US$85mn subordinated loan.
IFC has previously extended two senior loans and a trade finance line to BCC, a medium-sized bank that focuses on small and medium enterprises.
“This important alliance with IFC and Kookmin Bank will allow BCC to strengthen its positions in the local market,” says Vladislav Lee, chairman of BCC’s management board.
“BCC is a key partner for IFC in addressing the financing needs of small and medium enterprises in Kazakhstan, which are vital for private sector development,” says Shahbaz Mavaddat, IFC director for Southern Europe and Central Asia. ““IFC is pleased to provide continued support to an existing client under challenging conditions in international financial markets.”
“With the joint investment, BCC will be able to secure capital worth US$100mn. In addition, the Kazakhstan lender will capitalise on our core capabilities and IFC's advanced financial management experience,'' a Kookmin official said.
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