Shareholders of KICB approved increase of Charter Capital by USD 7.5 million

Istanbul, Turkey, 21^st May 2010. Shareholders of Kyrgyz Investment and Credit Bank (KICB), one of Kyrgyzstan’s leading commercial banks, agreed to increase the Charter capital of KICB by USD 7.5 million. The decision to increase the Charter Capital was made at the Shareholders Meeting held on 21^st May, 2010 in Istanbul, Turkey.

The Current Charter capital of the bank is USD 10 million and the increase of USD 7.5 million will bring the total Charter Capital of KICB to USD 17.5 million.

“Kyrgyzstan, as one of the KICB shareholders, fully supports the decision made at the shareholders meeting to increase the Charter Capital.  We are confident that the increase of KICB capitalization will enable the bank to extend its lending opportunities and thereafter extend the ability of the bank to finance entrepreneurs in different regions of the country. Moreover, it will undoubtedly lead to the further growth of economic and business activities in the Kyrgyz Republic”, said Mr. Abdyldaev SH. I., Ministry of State Property of the Kyrgyz Republic.

“The decision to increase the Charter capital shows strong commitment of KICB shareholders to the further development of the KICB. This demonstrates firm evidence of our shareholders’ confidence in the bank and in the Kyrgyz Republic. Our plan is to become one of the few top-tiered banks in Kyrgyzstan which is consistently trusted by its customers. The capital increase is an important milestone for the bank in realizing its strategic objectives and it also represents a significant contribution to the economic development of the Kyrgyz Republic”, said Mr. Kwang-Young Choi, CEO of KICB.

The increased capital base will enable the bank to raise more funds from International Financial Institutions, which will ultimately be channeled into the private sector of the Kyrgyz economy through increased lending to borrowers.

With new funds from the capital increase, KICB will continue investing in its banking infrastructure and product development, including opening new regional branches, broadening its ATM network and more.

Ever since the start of its operations in Kyrgyzstan, in addition to its paid-in capital the Bank has attracted funds of around USD 60 million through different credit lines. These funds are long, medium and short term loans to small and medium-sized businesses throughout the Kyrgyz Republic, which represent the bulk of the country’s economy. In fact, KICB is the first bank in the Kyrgyz Republic to introduce long- and medium-term lending due to the availability of funds through these credit lines.

KICB has plans to increase its Charter Capital up to USD 30 million within 5 years, and the current capital increase of USD 7.5 million is the first step in this direction.

KICB was established in 2001 with an initial share capital of USD 7 million. The bank’s shareholders are comprised of world-renowned international financial institutions (90%) and the Kyrgyz Republic (10%). International shareholders include: Aga Khan Fund for Economic Development (AKFED) - 21%; Habib Bank Limited (HBL) - 18%; Deutsche Investitions und Entwicklungsgesellschaft GmbH (DEG) - 17%; European Bank for Reconstruction and Development (EBRD) - 17%; and the International Finance Corporation (IFC) - a member of the World Bank - 17%. KfW is a co-founder of the bank and also provides access to long-term financial resources