Almaty, 2 November 2011. The Eurasian Development Bank (EDB) has launched financing for Kazexportastyk Holding’s programme to optimise its balance sheet in the preparation to entering foreign stock markets. The Bank will provide US $35.2 million to the holding for five years.
Kazexportastyk plans to substitute loans that have been raised previously to purchase crops and oil plants as well as for animal breeding.
The substitution of these loans will allow significant savings in terms of interest paid to lenders and expenses for the maintenance of collateral. In the end, these measures are expected to help increase the working capital and investment resources and expand the range of products with added value such as flour, meat, milk and dairy products.
This project is another milestone in the cooperation between the EDB and Kazexportastyk. The Bank has already financed three company’s investment projects. In 2008, at the peak of the crisis, the Bank provided the holding a US $18.9 million loan to develop flour manufacture and grain exports infrastructure; in 2009 US $18 million to purchase and equip a flour mill; and in 2010 US $35 million to purchase oil plants (linen and rape) from Kazakhstan’s producers for re-export.
Additional Information
The Kazexportastyk Holding was set up in April 1999. This is one of the top three largest grain companies in Kazakhstan. The holding works in North Kazakhstan and Akmola Oblasts and is the world’s largest producer of linen. The company ranks 28th among Kazakhstan’s top 100 largest companies (according to the Expert Kazakhstan magazine). In 2010 it had a turnover of US $304.8 million. The company’s main activities are the production and export of grain, oil plants and flour; the leasing of agricultural machinery; the distribution of equipment, crop protecting agents, fertilisers and seeds; and investment in the agricultural sector.
For additional information about Kazexportastyk please visit its website:
https://www.kazexportastyk.kz/
