The financing is opened within the framework of Nurly Zhol Program, under insurance coverage of KazakhExport Export Insurance Company JSC (a subsidiary of Baiterek National Managing Holding JSC, hereinafter - KazakhExport).
The financing provided by DBK will allow the Molproduct company to increase the volume of deliveries of its products to the prospective Russian market. The total milk consumption in the Russian Federation regions, where the plant's products are expected to be supplied (Sverdlovsk, Tyumen, Chelyabinsk, Novosibirsk, Kemerovo, Orenburg, Kurgan, Irkutsk regions, the Republic of Sakha) is about 1.3 mln tons per year.
"It is expected that with support of DBK, the export earnings of the company will increase by 97%. The expected positive effect corresponds to the goals of Nurly Zhol Program for the development of Kazakhstan non-commodity exports, one of the agents of which is the Development Bank," said Vladimir Li, the Senior Banker of the Directorate for Customer Relations of DBK.
"Our export possibilities are increasing with the financial support of DBK, since additional resources are required to expand the sales geography to purchase raw materials and cover other production costs. In the future, we also plan to start deliveries of dairy products to China as soon as opportunities for exports arise. Buyers from the Celestial Empire are interested in our products," stressed Bayan Ashimbayeva, the Financial Director of Agroproduct group of companies.
In turn, Ruslan Tyulegenov, the Managing Director of KazakhExport, drew attention to the fact that Moldproduct LLP has been serviced by KazakhExport since June 2016. "The first project was implemented at that time - insurance of the company's investment loan for the purchase of equipment for the production of innovative packaging. This loan was issued by a second-tier bank under the concessional financing program of Development Bank of Kazakhstan. Our second joint project provides replenishment of working capital for expansion of export activities under insurance coverage of KazakhExport. This tool, on the one hand, will help protect DBK from the default risk of borrower, on the other hand it will ensure financing of the entire cycle of produced for exports goods on favorable terms, and also minimizes the default risk of external counterparties," mentioned the representative of KazakhExport.
Molproduct annually produces 90,000 tons of products, about 15% of which (13,000 tons) for the amount of KZT 2.5 bln is exported to Russia. Due to financing from DBK, the company intends to increase the volume of annual export of products from 2018 to 26 800 tons, with annual export earnings - up to KZT 4.3 bln. Therefore, it is expected, that the share of exports in the enterprise's output products will grow to 30%.
Development Bank of Kazakhstan JSC (DBK) is a national development institution for the modernization and development of the non-resource and infrastructural sectors of the economy of Kazakhstan that was established in 2001. The main activities: development of production infrastructure and manufacturing sector, assistance and attraction of foreign and domestic investments into the economy of the country. DBK is one of the largest investment operators of state programs of Industrial-Innovative Development. DBK is part of the structure of National Managing Holding “Baiterek”JSC.
KazakhExport EIC JSC - a subsidiary of Baiterek National Managing Holding JSC. The mission of KazakhExport is to support the growth of export of non-commodity goods, works and services in priority sectors of the economy, formation of the practice of financial and insurance as well as non-financial support of Kazakhstani enterprises. Press-service: +7 727 250 00 21 (int. 134), website www.keg.kz
Moldproduct LLP is a part of the Agroproduct group of companies, which is one of the largest producers of milk and dairy products in the Republic of Kazakhstan.
