Сhanges in shareholders structure of Demir Kyrgyz International Bank CJSC PDF Print E-mail

Demir Kyrgyz International Bank CJSC (Demir Bank) informs, that Mr. Halit Cingillioglu, as major shareholder of Demir Bank, has agreed with long-term partners International Finance Corporation (IFC), a member of the World Bank Group, and European Bank for Reconstruction and Development (EBRD), two of the largest global development institutions for private sector in developing countries, to buy all Demir Bank’s shares belonging to IFC -15%, and half of the Demir Bank’s shares belonging to EBRD - 7.5%. 

IFC and EBRD have been excellent partners for Demir Bank its major shareholder since foundation of the bank in 1997.   Their support in the development of DKIB’s business, its internal systems, corporate governance and infrastructure has been very valuable for the bank.

This acquisition is not the end of Demir Bank’s partnership with IFC in Kyrgyzstan. It is a new phase of partnership with IFC at Demir Bank. This partnership will continue in a different format whereby IFC will continue to support Demir Bank in the area of long term funding, co-financing projects and trade finance. The transaction is also consistent with IFC’s strategy of liquidating their longer term equity investments in the region, to continue and expand their relationship on the lending side. 

And nowadays, Demir Bank is negotiating with IFC for USD 5 mil credit line for finance of SME customers and Energy Efficiency Program. Whereas with EBRD, Demir Bank’s existing shareholding relation will continue with their remaining shares of 7.5%, in addition to their support in providing long term funding, co-financing projects and trade finance. Currently, Demir Bank has total USD 14 mil credit lines which consists of USD 6 mil Kyrseff – Energy Efficiency line , USD 2 Mio SME Financing Limit , USD 3 Mio Trade Finance Limit and USD 3 Mio Co-Finance limit for financing Corporate & SME customer with equal risk participation.

As the majority owner of the bank, Mr. Halit Cingillioglu as  commitment for Demir Bank and Kyrgyzstan continues. And Mr.Cingillioglu is already working on further increasing his investments in Kyrgyzstan. As of end of 2013, DKIB is the leading bank in retail banking as well as corporate banking areas and the 3rd largest bank of the country both in terms of asset size, deposit base  and in terms of net profits. And the bank has more than 65 % shares for number of POS (Point of Sales (terminals, more than 30 % shares for ATM network which serves for international payment and credit cards.

DKIB was always the pioneer bank for many banking products such as, international swift payments, internet banking, VISA and MasterCard Principal Membership, ATM Networks. And in 2014, DKIB completed several new projects for the comfortableness  of its customers . These projects are GAI project for the payment of Traffic fines, e-commerce for internet shopping , Cash-In ATM’s for the replenishment of accounts in USD and KGs currencies .

And DKIB has continued to extend its branch network by opening new branches in the regions . Currently the bank has branches in Bishkek , Osh , Jalalabad , Karakol and Cholpon Ata city and in December 2014 the bank will continue to open new branches in Talas, Narin and Bishkek city .

Major shareholder, Bard of Directors, Management Board and personnel of Demir Bank would like to thank IFC and EBRD for their contribution, the excellent partnership in the past. More importantly Demir Bank thanks them also for their continued support and partnership for Demir Bank over the coming years.