SHAREHOLDERS OF THE " KAZKOMMERZBANK" DECIDED TO INCREASE AUTHORIZED CAPITAL TO 5 BILLION TENGE

The shareholders of "Kazkommerzbank" decided to increase authorized capital to 5 billion from 2,9 billion tenge. It made with the purpose of widening activity and further growth of the bank at the expense of added emission of simple and privileged shares.

At the meeting of the Kazkommerzbank shareholders in July 30 the decision about issue of privileged shares on the sum of 1,250 billion tenge, that will form 25% from authorized capital size. The bank will make added emission of simple nominal shares on the sum of 850 million tenge.

As the press service underlined, the question about issue of privileged shares was discussed at the previous meeting in July 12. At the meeting the shareholders agreed with the suggestion of placing privileged shares in a

free sell with the fixed dividend size in dollars equivalent. Now the shareholders confirmed the emission's volume.

The authorized capital of the bank is now 2,9 billion tenge. After placing added emission shares it will reach 5 billion tenge, including 3,75 billion of simple nominal shares and 1,25 billion of privileged.

" The bank is growing and wants to see the capital, coincident to its growth. During several years the capital increase was at the expense of internal sources , firstly at the expense of recapitalization of income, but

not at the expense of inflow of share capital",- said the managing director of the bank Mr. E. Abdrazakov.

In June bank's assets exceeded $1billion. It pushed the bank to lead the size of authorized capital in consideration with the activity scale and draw added investments at the expense of new share's issue.

The bank's assets increased in 2,2 times in July 1 in comparison with the same period of 2000 and formed 158,3 billion tenge ( $1,081 billion). The own bank capital has increased on 22,8% to 17,1 billion tenge.

At the meeting the shareholders ratified the finance accounting of Kazkommerzbank for the first six months 2001 and accepted the strategy of the development of retail business and made some changing to the bank's

regulations in the connection with the decision about increasing of authorizes capital and added emission of shares.