DBK to increase financing of non-energy sector of Kazakhstan economy

ASTANA (TCA) — Development Bank of Kazakhstan (DBK) on May 3 said it has amended its credit policy in order to increase financing of projects in the non-energy sector of Kazakhstan’s economy.

The Bank has reduced the threshold for investment projects financing from USD 30 million to KZT 7 billion, for the food industry – from USD 10 million to KZT 3 billion, for export operations – from USD 5 million to KZT 1 billion. In order to improve information transparency, the Bank has expanded the database of open access information on projects that are under administration and financing of DBK.

DBK’s loan portfolio increased 4-fold in 2016 as compared to 2013 and amounted to more than 1.6 trillion tenge. Over the past 4 years, DBK’s assets have increased almost 2.5-fold.

In 2016, DBK approved 19 projects for financing for a total of 225 billion tenge. Total funding of projects and programs in 2016 amounted to 426 billion tenge, which is a record figure (growth was 30% to the level of 2015). During the period, 14 investment projects and 10 export operations of enterprises of non-energy industries were implemented for a total amount of KZT 277.5 billion.

In 2016, the Development Bank financed such major projects as the construction of a rail-beam plant in Aktobe, the expansion of Karaganda TPP-3, the modernization of gas distribution networks in the city of Taraz and the South-Kazakhstan region. DBK financed the construction of ore mining and processing mills for sulfide ore processing at the Aktogay deposit in the East Kazakhstan region.

In the four months of this year, DBK has approved 6 projects for financing for a total of 346 billion tenge, including modernization and reconstruction of Shymkent oil refinery, as well as reconstruction of the passenger terminal of Astana international airport. In addition, 2 projects in such sectors as food industry (food production) and oil refining are under bankable feasibility study.

At the same time, 7 investment projects and 6 export operations were financed for the first 4 months of this year for a total amount of 102.5 billion tenge.

In 2017, the Bank plans project lending for a total amount of about 350 billion tenge. For the current year, DBK has identified a portfolio of 12 potential projects that are at different stages of consideration, with a total cost of KZT 759.6 billion and the requested financing amount of KZT 312.6 billion in such industries as engineering, chemical, petrochemical and metal industries and production of building materials.

Development Bank of Kazakhstan is a national development institution for modernization and development of non-resource and infrastructural sectors of the economy of Kazakhstan.

Sergey Kwan

TCA