Mission and strategy

Dependence of Kazakhstan on the exports of fuel and mineral resources, sluggish investment activity in infrastructure and processing industry makes the national economy vulnerable and sensitive to volatilities on the world commodity markets.

As a result, the government has set the goal of moving away from the dependence on the exports of mineral resources by putting a stake on conducting radical economic reforms. Integration to the world economy and accelerated modernization of the national economy require a quality breakthrough in all development directions based on innovations, creating new sources of economic growth, and a better use of the traditional comparative advantages of the country.

For achievement of these goals in May 2001 The Joint-Stock Company “Development Bank of Kazakhstan” with a special legal status was established on the basis of the Edict No.531 of December 28, 2000 of the President of the Republic of Kazakhstan “On the Development Bank of Kazakhstan” in accordance with the Law of the Republic of Kazakhstan dated April 25, 2001 “On the Development Bank of Kazakhstan” pursuant to the Decree No.659 of May 18, 2001 of the Government of the Republic of Kazakhstan “On the Incorporation of the Closed Joint Stock Company “Development Bank of Kazakhstan”.

The Bank is registered with the Registration Service Committee of the Ministry of Justice of the Republic of Kazakhstan on May 31, 2001 as a closed joint stock company and was re-registered as a joint stock company on August 18, 2003 in accordance with the requirements of the legislation of the Republic of Kazakhstan.

The Bank’s mission is to promote stable long-term economic growth of the Republic of Kazakhstan by way of satisfaction, on a commercial basis, of the investment needs of the accelerated development of the competitive secondary industries of the national economy in the credit resources, which are not supported by the second-tier banks.

The Bank’s niche includes:

- Processing industry, production, transport, and energy infrastructure;

- Large-scale (over USD 5 million) capital intensive investment projects with a long period of cost recovery;

- Assistance to the exports of the domestic manufacturers.

Under the Law of the Republic of Kazakhstan “On Banks and Banking in the Republic of Kazakhstan” the Bank has a special legal status specified in the Law “On the Development Bank of Kazakhstan”.

In compliance with the Law the goals of the Bank include: improvement and enhancement of efficiency of the public investment activity; development of industrial infrastructure and processing industry and assistance in attracting the foreign and domestic investments to Kazakhstan’s economy.

The Bank’s objectives are as follows:

1. Medium-term (five and more years) lending and long-term (ten and up to twenty years) lending of the investment projects;
2. Lending, including co-financing export transactions of Kazakhstan’s residents by offering loans to resident-suppliers of Kazakhstani goods;
3. Stimulation of lending of the industrial sector of Kazakhstan’s economy by issuing guarantees with regard to borrowings and loans extended by other lending institutions and stimulation of co-financing;
4. Further improvement of funding mechanisms of the investment projects implemented by the Government of the Republic of Kazakhstan;
5. Other goals in accordance with the legislation of the Republic of Kazakhstan.

The main principles and priorities of the Bank’s credit policy, investment priorities, quantitative restrictions on attraction of the borrowed funds, limits, directions, possible conditions, procedures and terms of lending, allocation of shareholders’ equity, co-financing, issuing guarantees, performance of agent’s functions are stated in the Memorandum of the Bank Credit Policy approved by The National Holding Company.

It is important to note that the Development Bank of Kazakhstan, being a development institution, works on accomplishing the objectives of the state investment policy determined by the Government and by the sole shareholder Kazyna Sustainable Development Fund. At the same time, being a financial organization, the Bank fulfills all the requirements set for commercial banks and operates on commercial basis.