October 19, 2018 / 11:03 AM / a year ago

Exclusive: Kazakh Tsesnabank borrows more from c.bank, plans large bond sale -CEO

The logo of Tsesnabank, Kazakhstan's second biggest lender by assets, is seen at a branch of the bank in Astana, Kazakhstan, September 12, 2018. Picture taken September 12, 2018. REUTERS/Mariya Gordeyeva

ALMATY (Reuters) - Kazakhstan’s second-biggest lender by assets, Tsesnabank TSBN.KZ, has received additional short-term funding from the central bank and plans to raise longer-term financing by selling over 250 billion tenge ($686 million) in domestic bonds next month, its chief executive told Reuters.

“First the central bank gave us 150 billion tenge, we repaid 100 billion, but then there was a stir (when some depositors withdrew money) and the central bank allowed us to use those 100 billion tenge,” CEO Ulf Wokurka said.

“...At the end of September we had to ask the central bank to increase the loan to 200 billion tenge.”

The loan must be repaid within 12 months, Wokurka said, and the bank will seek to do it as quickly as possible.

He said Tsesnabank planned to sell more than 250 billion tenge in medium- and long-term domestic bonds next month after announcing a total of 500 billion tenge in planned issuance this week.

Tsesnabank, controlled by the family of Adilbek Zhaksybekov, President Nursultan Nazarbayev’s former chief of staff, has also sold 450 billion in loans to the state Non-Performing Loans Fund while its shareholders pledged to boost the bank’s capital.

Reporting by Mariya Gordeyeva, writing by Olzhas Auyezov; editing by Jason Neely

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