Kazakhstan's banking ambitions are going global

ForteBank is one of the leading banks in Kazakhstan, serving retail, SME and corporate customers and boasting 21 branches and 71 stores across the country. The bank's CEO is Talgat Kuanyshev, a banking executive with over 30 years of leadership experience in the financial sector of Kazakhstan. He led ForteBank through key phases of strategic development and transformation, focusing on sustainable growth and operational excellence. Kuanyshev spoke to him Global Finance about the bank's recent landmark acquisition, the record bond issue, and why increased investor awareness means there is no need to “define Kazakhstan from the ground up.”

ForteBank acquired Home Credit Bank late last year – what was the reason for this acquisition?
The acquisition of Home Credit Bank is a logical step in implementing our long-term strategy. We were looking for an opportunity to accelerate growth in the retail and consumer segment – an area where Home Credit Bank has built strong expertise and brand recognition. For Forte, this acquisition adds a mature sales technology platform and a well-established customer base. By combining the expertise of the two banks, we expand our product and strengthen our focus on service quality and reliability.

What benefits will this transaction bring to ForteBank's customers and shareholders?
For our customers, the main benefit at this stage is continuity: all existing agreements are still valid, and customers of both banks continue to be served under the same conditions through the same channels – branches, call centers and digital platforms. In the medium term, customers will have access to a wider product range, including Forte's business and premium offerings and Home Credit's strong consumer lending capabilities. For shareholders, the concept is equally clear: we strengthen our market position, build a strong and diverse business and create a platform for sustainable growth. This deal is not about scale for scale's sake – it's about quality growth.

Do you anticipate any challenges during integration, and how will you address them?
Any integration of this scale comes with operational complexity, and we approach it realistically rather than optimistically. Our goal is simple: customer experience comes first, and we will not compromise service stability for the sake of rapid technology integration. Therefore, the merger will be phased, with priority determined by business value rather than arbitrary timelines.

Last year ForteBank issued $400m in Additional Tier 1 (AT1) bonds. Why was this historic event so important?
The importance of this release goes beyond a single transaction. The initial placement of Phase 1 Additional in the capital market of Kazakhstan – a stop sign that opens a new chapter in the development of the country's financial system. The bonds were issued in accordance with 144A/RegS standards, listed on the Vienna MTF and the Astana International Exchange (AIX), governed by English law, and fully compliant with Basel III requirements. The instrument is included in Tier 1 capital in tenge.

We are expanding our product offering and strengthening our focus on service quality and reliability

At ForteBank, this is part of a deliberate strategy: to strengthen the capital structure, diversify funding sources and expand access to international markets. In Kazakhstan, it sets an example showing that local institutions can attract funds from deep global capital sources on terms comparable to issuers from more established markets.

The issue was oversubscribed three times – what drove such strong demand from international investors?
Yes, the order book has tripled, with the participation of more than 100 investors from the UK, US, Switzerland and Hong Kong. The geography and the quality of the investor base speak for themselves: this was not an opportunistic demand, but a balanced share among long-term institutional investors. Confidence was fueled by several factors – ForteBank's reputation as an issuer with transparent reporting and disciplined financial management, the quality of the instrument structure, and the growing recognition of Kazakhstan as an emerging market. We worked with a strong organization – JPMorgan as coordinator and bookrunner, First Abu Dhabi Bank, Commerzbank, and Mashreq as joint bookrunners, and ForteFinance as local placement partner.

Have you noticed a change in global investor confidence in Kazakhstan in recent years? What is driving the country's development as an attractive growth market?
Yes, the change is noticeable. A few years ago, negotiations with international investors required an important part of 'education' – Kazakhstan had to be explained from the ground up. Today, these conversations begin at a much higher level of awareness. Investors come with information about the stability of the country's macro economy, its strategic position among major economic structures, and the depth of reforms in the financial sector. The demand situation for our AT1 releases – UK, US, Switzerland, Hong Kong – would have been hard to imagine five years ago. This is supported by several factors: prudent monetary policy, strengthening of the regulatory framework under the Agency for Regulation and Development of the Financial Market, and the emergence of Kazakh issuers who are building a reliable record in international markets. Each successful purchase made by a Kazakh exporter makes it easier for the next one – and we see our role in continuing to set these standards.

In 2025, ForteBank became the first commercial bank in Kazakhstan to receive loans in Chinese yuan. Why was this transaction so important?
This is the first syndicated loan in yuan raised by a commercial bank in Kazakhstan – RMB 750m (€95m) with a tenor of three years. Its importance is twofold. First, it expands the toolkit available to Kazakh banks: syndicated funding has traditionally been based largely on USD, and the introduction of the yuan opens up a new dimension of currency diversification. Second, it reflects the practical realities of our economy – China is one of Kazakhstan's largest trade partners, and a large part of our corporate clients pay in yuan. The ability to fund these flows directly in the same currency reduces FX risk for our clients. This is the kind of benchmark that creates a template for others to follow.

What does this mean for the future of commercial lending in the country and the development of alternative financing?
I believe we are at the beginning of a structural revolution. The dominance of the US dollar in cross-border financing will remain, but the share of other currencies – yuan, dirham, and others – will continue to grow as trade changes. With commercial lending in Kazakhstan, this is a good option: borrowers get more options, banks can match the financing with the capital of their clients' businesses, and there is no risk of a single currency shock. Our yuan deal is double-registered, with five international banks participating in the company – including ICBC Standard Bank, First Abu Dhabi Bank, Export-Import Bank of China as Authorized Arrangers, and Altyn Bank as Arranger.

The proceeds are directed to major investment projects in metallurgy, industry, and other strategic sectors, supporting the modernization and improving the international competitiveness of our economy.

What is your vision for expanding business flows and strengthening relations between China and Kazakhstan? How do you plan to achieve this?
Kazakhstan and China are neighbors with deep economic ties: a shared border, infrastructure projects, and growing trade volume. Forte's role in this industry is to provide customers with a simple and reliable way to work with Chinese partners. The yuan syndicated loan is an important step in this regard: it not only diverges our funding but also lays the foundation for further cooperation. Within this transaction, we have partnered with China's leading institutions – ICBC and the Export-Import Bank of China – and we see this as a basis for building long-term relationships.

In all of these programs, there is a clear theme of expansion and diversity. What is your long-term strategic vision for ForteBank?
If we look at these three activities together – the issuance of AT1, the combined yuan loan, and the acquisition of Home Credit Bank – they are not three separate issues. There are three expressions of the same long-term strategy: to build a bank that is structurally strong, highly diversified, and deeply integrated into the global economy. AT1 strengthens our currency base and provides leverage to continue lending to Kazakhstan's economy. Yuan loans diversify funding and align with how our clients actually do business. Home Credit Acquisition expands our sales capabilities and accelerates our entry into consumer finance. Each of these steps addresses a specific objective or opens up a new opportunity – and together they position ForteBank as a bank that supports Kazakhstan's economy in all cycles. That is the bank we are building.