On May 31, the Development Bank of Kazakhstan, which supports the national industrial non-resource sector celebrated its 20th anniversary. This year, DBK anniversary symbolically coincided with the 30th anniversary of sovereign Kazakhstan, thereby emphasizing the inextricable connection of common goals and strategic objectives. The customer meeting is aimed at improving the quality of DBK services and outlining the prospects for mutually beneficial cooperation between the Bank and representatives of medium and large national businesses in practical terms. In total, the event was attended by more than 60 businessmen from all over the Republic.
Speaking about the 2021 results, the Head of DBK Abay Sarkulov noted that the Bank’s loan portfolio was KZT 1 873.3 mln. as of October 31. During this time, the Bank has invested KZT 250.6 bln. in the manufacturing industry and infrastructure. Over the course of the year DBK commissioned five projects: Karavan-Saray Multifunctional Tourist Complex, Jairem Mining and Processing Plant, Turgusun Hydro Power Plant, Shymkent Chemical Company, and Qaz Qarbon Processing Plant with Saryarka Ferroalloy Plant. At the same time, in the reporting period it was decided to finance 12 projects for the requested loan amount of KZT 670.8 bln. in such sectors as renewable energy, information and communication, food industry, chemical, gas and chemical industry and metallurgy.
“The Development Bank of Kazakhstan celebrates its 20th anniversary in the year of the 30th anniversary of sovereign Kazakhstan. Over the years, the Bank has transformed several times to meet the demands and challenges of the times. We are not slowing down today. We set more ambitious goals. Objectives set by the state put the Development Bank of Kazakhstan at the forefront of economic reforms. The Bank’s success and performance is our joint effort,” Chairman of the Management Board Abay Sarkulov told the Bank’s customers.
Another important topic of the meeting was the presentation of the Bank’s own development – an Analytical Portal on The Foreign Trade Review in The Republic of Kazakhstan. The portal provides summary information on foreign trade turnover: operational data on exports and imports, which regions provide exports of certain products and to which countries.
“Our development is grant assistance to entrepreneurs. This may be of particular interest to Kazakh enterprises, which are forced to look for new markets or new niches for development and points of growth during the pandemic. For example, in the “Exports” - “Exports by Region” section you can select a particular type of product and see on the interactive map the volume products exported from this area and the region’s share in total exports. It is our hope that our portal, in addition to operational trade statistical information, will also help entrepreneurs to find new niches, analyze the prospects for production of a particular product and assess the level of potential demand for it both in the domestic and foreign markets,” – said the Managing Director of DBK Rakhimzhan Satayev.
Moreover, the Bank’s customers were presented an updated strategy of the Development Bank. The document was a kind of the Bank’s response to the fast-changing economic situation in the world. DBK Strategic Plan 2023 updated to current realities is based on three main areas: promoting national economic growth in partnership with business, managing financial resources to meet business needs, and operational excellence. Thus, DBK shifted its focus to strengthening cooperation with domestic businessmen by increasing the share of competitive products with high added value and expanding the range of exported goods made in Kazakhstan.
The Bank’s updated strategy identified key objective of supporting the manufacturing development with a focus on increasing projects for the production of medium and upper-end products. We plan to increase the number of such projects in the loan portfolio structure in the manufacturing industry to 35%, and to invest about KZT 1.5 tln. in the development of manufacturing and infrastructure by the end of 2023. Above all, in its new Development Strategy, the Bank pays special attention to supporting domestic exporters with a focus on diversification of export products.
During the meeting, the Bank’s top management has introduced customers with another innovation – a virtual “Borrower’s Personal Account” which, among other things, enables potential borrowers to submit and sign the necessary documents, track the applications status online. The Borrower’s Account is designed to increase the speed of decision-making on project financing and improve the comfort and efficiency of communication with DBK staff.
“DBK faced the issue of customer engagement before the pandemic, and it was due to the geographic location of our customers. We have neither branches nor representative offices, so we tried very hard and in 2019 we launched a personal account,” said Damegul Zhurgenbayeva, Director of the Business Processes Department.
Features of interaction in the marketing and technical analysis, as well as advice on preparing a project proposal were presented by Yerzhan Issabayev, the Head of Integrated Informational Work Department and Alim Kzylbayev, the Head of Technical Analysis Department. Entrepreneurs appreciated such consulting assistance, which allows them to identify all the “bottlenecks” in their plans, to improve their projects before they are implemented - and, as a result, to avoid financial losses.
The main forthcoming change in DBK is the change of philosophy of relationship with the Bank. Zhanat Ansaganova, Director of the Analysis and Transactions Structuring Department told about it.
“We used to have this paradigm of thinking: DBK is the lender, and the customers are the borrowers. We suggest changing that paradigm to one in which DBK and the borrower are long-term partners. We are partners who are mutually improving corporate governance practices,” stressed the analyst. – We have some borrowers who have not experienced financing problem. They come to DBK despite some bureaucracy in our work, required element in the work that everyone needs in the end. We invite our customers to embrace this paradigm. We are partners. We look at all your applications from the perspective of - how to improve the project situation.”
At the end of the event attended by more than 60 businessmen from all over the republic, the guests were presented with the Bank’s anniversary book, which complied many significant achievements and events of the past years.
For example, over 20 years of existence, the Bank has launched production facilities for 125 investment projects worth KZT 7.5 tln., with the participation of the Development Bank worth KZT 3.3 tln. About 31 thousand permanent jobs have been created at the launched facilities. The chronicle captures the stories of all executives, congratulations from shareholders, independent directors and partners of the Bank.
At the meeting, customers expressed gratitude to the Bank’s employees for their long-term reliable cooperation, all-round support and professionalism.
Development Bank of Kazakhstan JSC (DBK) is the national development institution for the modernization and development of non-raw-materials and infrastructure sectors of the economy in Kazakhstan, established in 2001. The major activities: develop industrial infrastructure and manufacturing industry, promote and attract foreign and domestic investment in the national economy. (www.kdb.kz, facebook.com/kdb.kz).
Public Relations Department of Development Bank of Kazakhstan JSC: +7 (7172) 79 26 08, pressa@kdb.kz (www.kdb.kz, facebook.com/kdb.kz, Twitter@KDBkz).
