Kazkommertsbank signs agreement with Distressed Assets Fund

/KASE, June 25, 15/ – Kazkommertsbank JSC (Almaty), whose securities are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press-release: quote JSC Kazkommertsbank ("KKB" or "the Bank") (LSE: KKB; KASE: KKGB), one of the largest banks in Kazakhstan and Central Asia, today announces the signing of an agreement with JSC Distressed Assets Fund ("DAF") on the provision of conditional financing. According to the agreement, KKB is to receive KZT 250 billion for 10 years from DAF. Oleg Smolyakov, Deputy Chairman of the National Bank, commented: "In accordance with resolutions set out by the National Bank and the Government, the National Bank has approved the terms of KKB's transactions with DAF, aimed at improving KKB's asset quality. As a result of this transaction, we expect to see a reduction in non-performing loans in KKB and across the entire sector". Magzhan Auezov, Chief Executive Officer of Kazkommertsbank, said: "The signing of this agreement marks an important milestone for the Bank after the integration of BTA. Our priority now is to reduce the bank's exposure to toxic loans, which the support offered by the Government will drive. Ardak Thies, Chairman of the Management Board of DAF, said: "DAF, Kazkommertsbank and the regulator have together worked extensively to ensure that all the necessary procedures and approvals have been met prior to the execution of this agreement. We believe that the transaction will help the Fund deliver on its major objective of reducing the level of non-performing loans and the general improvement of asset quality in the banking system of Kazakhstan". For contacts: Kazkommertbsnak Aliya Nursipatova, Alma Buirakulova, Investor Relations tel.+7 (727) 258-51-25, E-mail: investor_relations@kkb.kz Larissa Kokovinets, Public Relations tel. +7 (727) 258-54-56, 258-53-92, E-mail: pr@kkb.kz unquote [2015-06-25]