On May 12, JSC "Development Bank of Kazakhstan" (a subsidiary of JSC "National Managing Holding "Baiterek", hereinafter – DBK, Bank) secured a loan of 120 million US dollars from J.P. Morgan for a period of more than 10 years. The proceeds were used for long-term financing of the purchase of equipment for the Aktogay Mining and Processing enterprise. Insurance coverage for the transaction is provided by the Export Credit Agency of Denmark EKF. For the Danish agency, this was the first ever transaction in Kazakhstan.
"Such a loan allowed DBK to finance the development of one of the largest enterprises in the mining and metallurgical complex of Kazakhstan. It is important that the Aktogay Mining and Processing Enterprise expansion project received an environmental opinion from the international consultant for sustainable development ERM for compliance with ESG requirements. In addition, we received insurance from a major international agency, which indicates a high trust to DBK and the projects it finances", comments Ruslan Iskakov, Chairman of the Management Board of the Development Bank of Kazakhstan JSC.
Botagoz Abisheva also noted the importance of the project for the country. Implementation of this project will not only increase production at a strategically important enterprise, increase the export and develop the industrial potential of Kazakhstan, but also create additional high-skilled jobs.
J.P. Morgan was selected as the authorized lead arranger, creditor and loan agent, and was also responsible for structuring and organizing the loan, 95% of which is insured by the EKF agency.
"This financing came together during one of the most volatile markets in the last few decades, which would not have been possible without the commitment and hard work of all parties involved. JPM is honoured to have been selected by DBK to deliver this EKF-backed financing, which has enabled the underlying project to become a reality", commented John Meakin, Global Head of Export & Agency Finance at J.P. Morgan.
We note that this is the first insurance deal of the EKF agency in cooperation with DBK for a Kazakhstan borrower on a mining project.
Development Bank of Kazakhstan JSC is a national development institute specializing in the financing and development of extensive infrastructure and industrial facilities in Kazakhstan. The Bank offers a convenient financing projects structure – from the investment phase to support the export of finished products. The "limit" for financing investment projects is from 7 billion tenge, for the food industry – 3 billion tenge, export operations – from 1 billion tenge. In order to increase information transparency, the Bank has also expanded the database of publicly available information about projects that are administered, financed and under consideration by the DBK. On the Bank's website, offers information about the main terms of financing and general information on projects.
JPMorgan Chase & Co is an American multinational financial conglomerate, one of the largest banks in the world. It is one of the "big four" US banks, along with Bank of America, Citigroup and Wells Fargo, and has total assets of $3.7 trillion. Provides investment banking, consumer and small business financial services, commercial banking, financial transaction processing and asset management services.
Export Credit Agency of Denmark EKF was established in 1922 as only the third export credit agency in the world and is owned and guaranteed by the Danish state. Over the years, EKF has helped Danish export by making it possible and attractive for customers abroad to purchase Danish products from Danish companies. In 2021, EKF secured export contracts totalling DKK 26 billion with total portfolio size of DKK 112 billion.