Deutsche Bank London, RZB, Bank Austria Creditanstalt and Bayerische Hypo- und Vereinsbank have been jointly mandated to arrange a US$100mn syndicated term loan for Nurbank, Kazakhstan. Proceeds will be used to finance specific trade finance transactions of select clients of Nurbank.
The mandated lead arrangers will soon launch the senior phase of syndication, which will be targeted primarily at Nurbank’s existing core relationship banks as well as a select group of banks active in the CIS financial institutions market.
The loan is priced at 1.65% per year. There is an extension option following completion of the two-year term
Nurbank was established with the support of the Akimat (local regional authorities) of Atyrau. Nurbank is a mid-sized bank with good asset quality, strong capitalisation and financial performance.
Previously it was the largest regional bank headquartered in Atyrau City, located in the western part of the country where most of the oil business is centred. Since 2003 the bank has relocated its head office to Almaty, the financial capital of the country, for more business opportunities.
Nurbank is a universal financial institution providing core banking activities. The Bank’s primary business consists of corporate and retail banking. With an extensive branch network, covering all the country’s major economic regions, the bulk of the bank’s revenues come from corporate banking.
However, the bank’s main strategy is to focus on increasing its SME business and retail market shares in the strategically important industrial and financial regions of Kazakhstan. At the end of 2006, Nurbank was ranked seventh in the country in terms of total assets.
Nurbank benefits from its supportive ownership structure, consisting of a number of local companies. Since Nurbank’s change in ownership in 1999, shareholders have recapitalised the bank regularly. As of January 1, 2007, Nurbank’s total capital, calculated in accordance with FMSA requirements, was Kt24.313bn, including Tier I capital of Kt21.222bn (an increase by 79.26% as compared with that index as of January 1, 2006).