EDB secures lease supplies of agricultural equipment to Kazakhstan for a total of US $10 million
Almaty, 13 July 2012. Eurasian Development Bank (EDB) has
provided a five-year US $10 million guarantee to secure Kazagrofinance’s
obligations before Deere Credit Inc with respect to a US $20 million loan for
the purchase of John Deere’s agricultural equipment with its subsequent lease
to Kazakh agricultural producers.
«This is a significant transaction which ensures the supply to Kazakhstan of cutting-edge agricultural machinery made by John Deere,» Dmitry Krasilnikov, Member of the EDB Management Board and Managing Director for Corporate Finance, said. «In the future we hope to enhance cooperation with this company and other manufacturers, primarily to arrange supplies of equipment made in the Bank’s member states.»
The American John Deere is one of the world’s leading suppliers and sellers of equipment for forestry and agriculture, including tractors, combine harvesters, and seeding machines.
The project is in line with EDB’s mission and strategy as it promotes sustainable economic growth in Kazakhstan through the development of export-orientated industries.
Additional Information
Kazagrofinance was set up in 1999 in accordance with a decree of the Government of the Republic of Kazakhstan. The company is a member of the Kazagro National Management Holding. Its main objective is to develop the country’s agrarian sector by providing agricultural producers with access to finance and agricultural and process equipment on the terms of lease. The company operates in all regions of Kazakhstan and has nine branches and four representative offices.
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org.