Kazakhstani lender Halyk Bank has agreed to sell its 60% stake in its subsidiary Altyn Bank to China CITIC Bank and China Shuangwei Investment.

Halyk will continue to hold a 40% stake in Altyn Bank following completion of the deal in the second half of 2017.

Under a shareholders’ agreement with the buyers, Halyk will also have certain rights over Altyn’s governance.

Halyk CEO Umut Shayakhmetova said: “China is an important market for Kazakh businesses. It opens up new selling opportunities for Kazakh goods and services. In turn, Altyn Bank will be able to offer its Kazakh clients all the necessary banking support, such as direct KZT/CNY currency exchange, trade finance, treasury operations and lending, for example.

“CITIC Bank will be an important partner for Altyn Bank, expanding its opportunities in a number of areas by virtue of its scale and presence as a significant international bank. In addition to this, there is also the potential to leverage CITIC Bank’s technologies for Altyn Bank.”