Kazakh Kazkommertsbank repays $500 million bond

Nov 3. Reuters. ALMATY

Kazakh Kazkommertsbank repays $500 million bondKazakhstan’s largest lender, Kazkommertsbank, has repaid a $500 million Eurobond at maturity using own funds, it said on Tuesday.

Analysts have said the repayment should soothe the nerves of investors afraid more Kazakh banks could follow the example of BTA and Alliance, large local lenders which defaulted this year.

“We hope that the international investor community will see this as a positive development as confidence increases in Kazkommertsbank and the Kazakh banking sector in general,” Kazkommertsbank chief executive Nina Zhusupova said in a statement.

Kazakh banks have been largely unable to refinance foreign debts since mid-2007 as U.S. subprime mortgage meltdown prompted investors to liquidate relatively risky Kazakh exposure.

BTA and Alliance, which are now both in the process of restructuring their debts, have blamed their woes on growing bad loans and management fraud.