Capital Bank Kazakhstan signs memorandum of intentions regarding amalgamation of Capital Bank Kazakhstan and Tengri Bank

/KASE, March 15, 2017/ – Capital Bank Kazakhstan (Almaty), a member of Kazakhstan Stock Exchange (KASE), has informed KASE of the following: quote On March 13, 2017 shareholders of Tengri Bank and Capital Bank Kazakhstan signed a memorandum of intentions regarding amalgamation of the two financial institutions. It is assumed that the united bank will significantly strengthen its position on Kazakhstan's financial market. The consolidated capital of the banks will make up KZT43.2 bn, which will mean the 17th place in the ranking of second-tier banks. The united bank's capital adequacy ratio will reach 19%, which is 2.4 times higher than the allowed minimum. This measure serves interests of depositors of both banks and will have great synergy effect for the business development on the whole and implementation of strategic tasks declared by the banks. The growth on account of consolidation of banking institutions on Kazakhstan's market was envisioned in strategies of both banks. A successful completion of negotiations will allow further development of this line in future. Reorganization of financial institutions will be conducted in accordance with laws of the Republic of Kazakhstan and international standards. Currently, Tengri Bank and Capital Bank Kazakhstan render the full range of banking services of corporate financing and services for individuals. In December 2016 S&P Global Ratings affirmed the long-term credit rating of Tengri Bank at "B+", and in March 2016 – the long-term credit rating of Capital Bank Kazakhstan at "B-". these ratings reflect the stable position of both banks. unquote [2017-03-15]