Information from the Holding about the situation with Delta Bank

    “KazAgro” National management holding in the second half of 2017 made a claim assignment on current accounts, dedicated deposits and loans in Delta Bank JSC to third parties prior to revocation of this bank license for bank operations and others and conducting activity on the securities market that gave possibility of their return on early established terms of maturity and payment of interest.

    Particularly the agreements were concluded on fulfilment by third parties of bank obligations for assets on current accounts, as well as agreements of assignment between the Holding, Delta Bank JSC and Food corporation NC JSC, thus, the Holding requirements to Delta Bank JSC “transformed” into the requirements of Food corporation NC JSC to final borrowers – agribusiness entities.

    Totally the requirements of the Holding to the mentioned bank as of final reporting date amounted to 61.3 billion tenge, including in kind of dedicated deposits and loans – 49.9 billion tenge, on current accounts – 11.4 billion tenge.

    It should be noted that the whole sum of the bank indebtedness generated within the Program of financial recovery of agribusiness entities (as a part of the governmental program “Agribusiness-2020”) implemented by the Holding from borrowed funds on Eurobonds issued in 2013-2014 for 1 billion US dollars and 60 million Euros. At the moment of decision about participation of Delta Bank on the Program its rating was “B” with outlook “stable”.

    We recall that for financial recovery of agricultural producers the Holding funded Kazakhstan banks which in turn prolonged obligations of agribusiness entities up to 10 years. Besides, within the Program from budget funds a part of fee rate is subsidized on loans of agribusiness entities.

    Totally for the Program (with participation of the Holding funding) 222 applications of agricultural producers were taken from 11 financial institutions, 9 of which were banks selected by the Committee for financial recovery at the Ministry of agriculture with participation of the deputies of the Parliament, representatives of Atameken National Chamber of Entrepreneurs, the Financial Institutions’ Association of Kazakhstan, ministries of economy, finance and the National Bank.

    At present under the Program of financial recovery the Holding cooperates with nine banks which fulfil their obligations in time in the established order, and separate banks repaid the debt ahead of schedule. As of (01.10.2017) the last reporting date the Holding’s requirements to banks under the Program of financial recovery amounted to 95.62 billion tenge and 544.6 million US dollars with maturity date till 2024.

    In whole, the size of open position for STB in the Holding is regulated by internal documents and is controlled both on the level of the Holding and the group of subsidiary companies of the Holding.