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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
ATF Bank, Kazakhstan
Project ID
7948
Fiscal year
2009
Status
Not Active
Guarantee holder
UniCredit Bank Austria AG
Investor country
Austria
Host country
Kazakhstan
Environmental category
FI
Sector
Banking
Date SPG disclosed
May 22, 2009
Project Board date
June 23, 2009
Gross exposure
 $190.0 million
Project type
Non-SIP

View Summary of Proposed Guarantee


MIGA has issued a guarantee of up to $190.0 million covering UniCredit Bank Austria AG’s (UBA) $200 million shareholder loan to its subsidiary, ATF Bank Kazakhstan. The coverage is for a period of five years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The loan will improve ATF Bank’s asset-liability management through better matching of maturities in light of the shortage of long-term financing available in the Kazakh market. The loan is part of a broader funding strategy of the UniCredit Group to finance its subsidiaries and is particularly important given the current turmoil in financial markets worldwide, including Kazakhstan.

MIGA’s support for this project is in conjunction with the Financial Sector Initiative (FSI) framework recently developed by MIGA as part of a coordinated international response to the ongoing global financial crisis.  MIGA’s support will play a critical role in facilitating adequate long-term cross-border flows from UBA into its subsidiary in Kazakhstan by providing liquidity, and will help, in part, Kazakhstan’s financial sector to stabilize. This shareholder loan will provide refinancing of existing liabilities in the Kazakh economy. The ultimate beneficiaries of this loan will be customers, mortgage borrowers, and municipalities in Kazakhstan.

One of the main pillars of the World Bank Group’s country partnership strategy for Kazakhstan is enhancing competitiveness and private business. The project is  consistent with the aforementioned pillar.

 
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