EDB Opened Credit Facility for Kazexportastyk

Almaty, 25 June 2010. The Eurasian Development Bank opened a $35-million credit facility for Kazexportastyk Holding Company for purchasing oilseeds from Kazakh farms.

In accordance with the facility agreement the company will use the loan for purchasing linen and rape from 18 producers in Akmola and North Kazakhstan Oblasts and exporting them to neighbouring and remote markets, mainly Russia.

On the whole, the Bank will finance the purchasing of three harvests of linen and rape through a three-year revolving credit line.

“This project is in line with the EDB strategy,” commented Kambar Shalgimbayev, Deputy Chairman of the EDB Executive Board & Managing Director of Projects. “It will stimulate the production of oilseeds in Kazakhstan, which is poorly developed at present. At the same time the project will strengthen trade and economic ties between the member states of the Bank: commodity turnover between Russia and Kazakhstan is expected to increase by nearly $43 million annually”.

This is the third project in the history of co-operation between the EDB and Kazexportastyk. The Bank has already financed two agribusiness projects of this company for a total of $37 million.

“We greatly appreciate the EDB’s support. The opening of this credit facility indicates both the Bank’s trust in our company and the growing interest of international financial institutions in Kazakhstan’s agriculture sector,” said Igor Yermolenko, General Director of Kazexportastyk.

Summary

Kazexportastyk Holding Company is one of the largest grain companies and the leader in oilseed production in Kazakhstan. It was founded in April 1999. In 2009 the group had a total turnover of $400 million and equity of $205 million.

For more information about Kazexportastyk please visit its website https://www.kazexportastyk.kz/