30 September 2020
The first 100 loans under the new state program for micro and small businesses approved by Alfa-Bank
September 30, 2020 - 10:00
Alfa-Bank was one of the first banks to sign an agreement with the “Damu” Entrepreneurship Development Fund on a new direction of the “Business Roadmap” – “Support for Micro and Small Businesses” state program. One of the initiators of this program was Managing Director for Alfa-Bank and a member of the SME Development Committee of the Presidium of the Atameken Chamber of Entrepreneurs - Damir Kakiyev.
“About 17 thousand loan subsidize projects and about 10 thousand loan security projects were supported over the entire period of all state programs deployed in Kazakhstan. During the first week of the new program, our bank approved loans for the first 100 entrepreneurs at 6% rate. Almaty and Nur-Sultan Alfa-Bank branches were the first to approve and issue a loan to micro-business among second-tier banks in our country. Also, geographically across Kazakhstan, our branches made decisions and issued the first loans in Shymkent, Atyrau, Aktau, Aktobe, Uralsk, Petropavlovsk, Ust-Kamenogorsk and Karaganda. We expect this program to significantly increase the number of entities that receive state aid, given that there are more than 1 million active businessmen in Kazakhstan. This program is the first program in the country specifically aimed to help micro and small businesses. Such support is an exciting opportunity for our entrepreneurs. We are grateful to the Government for its help and will do our very best to ensure that this initiative reaches the maximum scale throughout the country. We set ourselves a goal - 10,000 customers” said Damir Kakiyev.
The loan amount does not exceed 5 mln tenge for working capital financing and 20 mln tenge for investment purposes. Such requirements limit the interest of larger players in low amount of borrowed funds. The maximum loan term is 2 and 3 years, respectively. Plus, there are no industry restrictions for participants.
“These days, during quarantine period, small businesses suffer hefty losses, and some entrepreneurs completely shut down their operations due to lack of funds for their development,” Damir Kakiyev shared, “Our main goal is to help entrepreneurs develop their businesses, and the focus on small business is one of the most important strategic priorities for Alfa-Bank. That is why we were the first in Kazakhstan to actively start issuing collateral-free loans at low rates for individual entrepreneurs and limited liability partnerships.”
Collateral-free lending is state support driven - 85% of the loan amount is covered by guarantees from the Damu Fund. Interest rate on a loan for an entrepreneur using a portfolio subsidizing instrument is 6% per annum (AEIR 19.3% as at 15.09.2020).
It is worth reminding that that subsidized loans are not Alfa’s only way to support businesses. The Bank offers a number of digital online services for businesses free of charge - opening an account within 10 minutes, a mobile application for performing transactions remotely, acquiring and online cash register in a smartphone.
Alfa-Bank has been operating in the Kazakhstani market for over 25 years. The Bank’s stability has been confirmed for four years in a row by Fitch Rating (BB-) and Standard&Poor’s (BB-/B). Alfa-Bank JSC SB. *FMRDA license No. 1.2.61/237 dated 03.02.2020
28 September 2020
ABH Ukraine Limited registered five Eurobond issues
September 28, 2020 - 10:30
On 22 September 2020, ABH Ukraine Limited, a shareholder of Alfa-Bank Ukraine, which owns 42.4% of the bank's shares, completed five new Eurobond issues.
Two issues are in the form of loan participation notes (LPN) for USD 50 mln with the maturity date October 15, 2024 (ISIN XS2228241175, 4 year tenor) at the interest rate 9.5% per annum and for EUR 50 mln with the maturity date July 15, 2023 (ISIN XS2228240367, up to 3 year tenor) at the interest rate 5.5% per annum, and three issues are in the form of credit-linked notes (CLN) for USD 4.5 mln (ISIN XS2237331587) and two for USD 9 mln (ISINs XS2237331660, XS2237331314) with the common maturity date January 15, 2023 (up to 2.5 year tenor) at the interest rate 8.75% per annum paid quarterly for all the issues. The level of yields on the issues indicates the current situation on the international capital markets.
The Eurobonds were issued pursuant to the rules specified by the Regulation "S" of the United States Securities and Exchange Commission. The LPN issues are listed on the Frankfurt Stock Exchange.
As of the publication date, there were 16 issues of ABH Ukraine Limited in circulation, including 13 issues in USD and three issues in euro, 7 issues have been repaid.
16 September 2020
Global Finance: Alfa-Bank is the best digital bank in Belarus
September 16, 2020 - 17:43
Alfa-Bank (Belarus) was recognized as the winner in two categories: Best Digital Consumer Bank in Belarus and Best Digital Corporate Bank in Belarus.
Global Finance magazine has been published since 1987, and its print version is distributed in 163 countries around the world. The candidates for the World’s Best Digital Banks award are evaluated by a jury composed of the staff of Infosys, a consulting, technology and outsourcing corporation, while Global Finance editors designate the final list of the best banks.
The winners were selected based on a whole list of criteria: effectiveness of the strategy of attracting and servicing digital clients, success in encouraging clients to use digital services, growth in the number of digital clients, products variety, as well as noticeable benefit from digital initiatives and projects.
In 2020, the digitalisation is particularly relevant due to the pandemic, and Global Finance publisher and editorial director Joseph D. Giarraputo also noted: “This year, the global pandemic has accelerated the transition to digital banking, but banks that are thinking ahead are already on this path. The Digital Bank Awards are dedicated to the companies that are leading us to the banking of the future”.
16 July 2020
Euromoney: Alfa-Bank awarded the Best Bank in Belarus and recognized for its response to the pandemic
July 16, 2020 - 09:39
For the second year in a row, the jury chose Alfa-Bank (Belarus) as the best bank in Belarus, and this year they also noted its response to Covid-19 crisis.
The British magazine Euromoney has been awarding banks around the world in various nominations since 1992. In the framework of the Euromoney Awards for Excellence, banks are evaluated by region. The expert jury chooses several best banks, and their choice is conditioned by many criteria: from annual reports and partners’ opinions to evaluation of transactions and balances. In addition, the jury selects best banks in every single country. And Belarus is not an exception.
The first Alfa-Bank's award was the Best Bank in Belarus. In this nomination, the jury evaluated the bank's business model, its innovativeness and ability to adapt, and its readiness to meet customers needs. Experts gave the award to Alfa-Bank for its “Outstanding Growth and Commitment to Digital Transformation”, and they particularly highlighted the country's first banking OpenAPI and a possibility for entrepreneurs to open a bank account via a mobile application.
In 2019, Euromoney also chose Alfa-Bank as the best bank in Belarus, and that time they noted its rapid growth in the mobile sector.
The second award was the Excellence in Leadership Award, for the Bank's response to Covid-19 crisis. The jury appreciated the simple loan deferral system with a possibility to conduct the entire process online. Experts also noted that entrepreneurs could open an account without leaving home, as well as receive their documents by the contactless delivery service.
Due to the coronavirus crisis, the Bank suspended its Clients Club (Alfa-Bank's business client community) and launched the Mutual Aid Platform (open to everyone), where entrepreneurs could share with each other unused resources, like idle equipment.
And a few words about charity. In Belarus, over 15,000 social workers and the Red Cross sisters of mercy take care of more than 92,000 elderly people every day, visiting them at home during the pandemic. Alfa-Bank (Belarus) has been supporting fundraising for related individual protection products.