BCC is the sixth largest bank of Kazakhstan in terms of total assets, holding 7.9% 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. Bakhytbek Bayseitov in 1988 as Almaty Central Cooperative Bank, “Center Bank” in 1996 it was re-registered into Bank CenterCredit. BCC is a universal bank with a countrywide network of 20 full-service and 190 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. Currently BCC has a broad base of shareholders, including its founding shareholders, Kookmin Bank Co Ltd., and Bank’s management. The majority shareholder is Mr. Bayseitov with a 36.4% stake, followed by Kookmin Bank Co Ltd. with 30.55%. Other shareholders include the senior management of the Bank and domestic institutional and individual investors.

The financing will be comprised of the acquisition of an equity stake of approximately 10% in the Bank and a subordinated loan of up to $85,000,000 which will qualify as Tier II capital.

170.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	85.0
Equity	85.0

* These investment figures are indicative

BCC is headquartered in Almaty, Kazakhstan and has 20 full service branches and 190 retail branches.

The successful implementation of this project will; Support a well managed systemic medium-sized bank through the global financial crisis and help stabilize Kazakhstan’s financial system; Promote SME lending in the economy; Support the good corporate governance of the Bank.

IFC financing will strengthen BCC’s capitalization through its equity participation and subordinated loan facility and demonstrate its support to the Bank and Kazakhstan financial system throughout the global financial crisis.

BCC is an existing client and IFC currently has 2 active projects (Category FI) with applicable performance requirements to comply with the IFC Exclusion List and applicable national social and environmental laws and regulations. During appraisal of this Category FI project, IFC will determine if the requirements should be extended to include the IFC Performance Standards as well. The client will be required to ensure that its Social & Environmental Management System (SEMS) and capacity is satisfactory to IFC.

General obligations of the Client will be to:

-Comply with the terms and conditions of IFC’s Declaration of Labor Policies and Practices;
-Commit to implementing the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance requirements; and
-Submit a periodic report to IFC as per a format provided by IFC.