BCC is the sixth largest bank of Kazakhstan in terms of total assets, holding 7.2% of total banking system assets, and it is one of the oldest private banks to emerge from the former Soviet Union. BCC was founded by Mr. B.Bayseitov in 1988 as Almaty Central Cooperative Bank, “Center Bank” in 1997 it was re-registered into Bank CenterCredit. BCC is a universal bank with a countrywide network of 20 full-service and 187 retail branches. Its extensive branch network enables a greater reach compared to other medium-sized Kazakh banks whose networks are generally concentrated in large cities. BCC provides a full range of banking services, including corporate banking, retail banking and trade finance. The primary focus of the Bank is SME and retail banking. BCC has a market share of approximately 11% in retail lending, 13% in SME lending and is the market leader in mortgage finance. Currently BCC has a broad base of shareholders, including its founding directors and management who collectively have a controlling ownership of the Bank. The majority shareholder is Bakhytbek Bayseitov with a 51.1% stake. Other shareholders include the senior management of the Bank and domestic pension funds. In March 2008, Korean Kookmin Bank agreed to buy 30% of BCC’s shares with further increase of its stake to 50.1% or more in 2.5 years.

The total project cost is estimated at $115 million. The financing will include: - a senior loan of up to $40 million for up to 7 years (2 year grace), and - a participation of up to $75 million in the Bank’s proposed DPR securitization.

45.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	45.0
Equity

* These investment figures are indicative

BCC is headquartered in Almaty, Kazakhstan and has 20 full-service and 187 retail branches.

The successful implementation of this project will - promote SME lending in the economy; - develop financial intermediation by increasing the kind of products and services available in the market; and - underpin the overall growth in the economy, as higher loan volumes will benefit customers, suppliers and new entrants.

IFC financing will strengthen BCC’s balance sheet with term funding and liquidity and demonstrate market access through DPR securitization.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. While BCC is an existing client as this project will follow IFC''s revised Environmental and Social Review Procedure IFC will analyze the bank''s portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List and/or
- The applicable National Social and Environmental Laws and regulations and/or
- The IFC Performance Standards

IFC will also review, if required, the capacity of the bank to manage social and environmental risks and to maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest supplemental actions to address any gaps in the bank''s SEMS. Based on the review, the project will be required to:

- Upgrade if necessary, its existing SEMS, prior to disbursement to the satisfaction of IFC
- Identify responsible, qualified persons to manage and implement the SEMS
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements
- Continue to submit a periodic report to IFC as per a format to be provided by IFC