Development Bank of Kazakhstan JSC (a subsidiary of «Baiterek» NMH JSC) together with the Singaporean ING bank, the Chinese Bank of China, the Kazakh Halyk Bank, as well as the Sinosure company, which will provide insurance coverage for ING bank borrowed funds and Bank of China signed an intercreditor agreement to finance the investment project «Construction of a plant for the production of soda ash» in the Zhambyl region.
The signing of the Agreement took place within the framework of the 13th meeting of the Kazakh-Turkish Intergovernmental Commission.
«This transaction was the first in the history of DBK, completed using a syndicated financing instrument with the participation of foreign banks under English law. Syndicated loans help increase the volume of financing for Kazakh businesses from both foreign and domestic banks. Reduces the share of DBK's participation in the project, which allows redirecting resources to other domestic projects. At the same time, the presence of DBK as a member of the syndicate gives confidence to foreign creditors, due to the trusting attitude towards our bank in foreign markets», comments Marat Yelibayev, Chairman of the Board of DBK.
The total cost of the project is about 207 billion tenge, of which the Bank's participation is 12 billion tenge. The future enterprise will become the first soda ash producer in Kazakhstan, its capacity will be 500 thousand tons of products per year. It should be noted that soda ash (or sodium carbonate) is widely used in the metallurgical, chemical, glass, pulp and paper, paint and oil industries. For example, it is used to produce crystal, optical and medical glass, glass blocks, foam glass, ceramic tiles, lead, zinc, tungsten, strontium, chromium, soapless soaps and many other goods.
The implementation of this project will ensure significant import substitution for soda ash, strengthen the raw material security of the domestic market and give Kazakhstani producers of the above-mentioned products a domestic supplier.
Moreover, the enterprise has export potential and will create 255 permanent jobs in the Zhambyl region and taking into account contractor companies – 355 jobs.
