EDB to finance supplies of agricultural machinery and equipment to Kazakhstan
Almaty, 26 December 2013. Eurasian Development Bank (EDB) opened a US $10 million targeted loan facility for Kazakhstan’s Kazagrofinance. The respective agreement was signed today by Dmitry Krasilnikov, Member of the Management Board and Managing Director for Corporate Finance at EDB, and Nurlan Umirzakov, First Deputy Chairman of the Board at Kazagrofinance.
The funds will be used to finance supplies of agricultural machinery and equipment to Kazakhstan, primarily from the EDB member states. At least 60% of the facility will be used to cover supplies from these countries. The facility will be available for up to five years in the form of direct finance and/or guarantees from EDB.
The project is in line with EDB’s mission and strategy as it promotes sustainable economic growth in Kazakhstan by helping to upgrade its fleet of agricultural equipment and advance its agro-industrial sector. In addition, it will contribute to an increase in trade between the EDB member states.
In March 2013 EDB opened a US $20 million loan facility for Kazagrofinance to finance agricultural machinery supplies to Kazakhstan and in July 2012 it provided a US $10 million guarantee for five years to secure Kazagrofinance’s obligations before Deere Credit Inc under a loan provided to purchase agricultural equipment from this company in order to lease it out to Kazakhstan’s agro-industrial enterprises.
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 equipment on the terms of lease. The company operates in all regions of Kazakhstan and has ten 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.