KASE: Tengri Bank, Capital Bank Kazakhstan Announce Merger
Tengri Bank signs memorandum of intentions regarding amalgamation of Tengri Bank and Capital Bank Kazakhstan, reports KazWorld.info with reference to the official website of Kazakhstan Stock Exchange.
March 15, 2017, Tengri Bank (Almaty), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has informed KASE of the following:
“On March 13, 2017 shareholders of Tengri Bank and Capital Bank Kazakhstan
signed a memorandum of intentions regarding amalgamation of the two financial
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.”