"Development Bank of Kazakhstan" JSC (a subsidiary company of JSC "National Management Holding" Baiterek", hereinafter referred to as Bank, DBK) provided bank guarantees in the amount of up to US $ 37.8 million for a period of two years and eleven months regarding the services of "AAEngineering Group" LLP on the construction of a gold-processing plant at the "Dzheruy" production field in Kyrgyzstan.
DBK’s warranty covers the undertaking of the obligations of the "AAEngineering Group" to the customer for the construction of a plant with infrastructure facilities and tailing facilities, as well as the return of the advance payment, paid by the customer in the event of non-fulfillment of the above obligations.
"The deal is notable for the fact that, firstly, DBK for the first time in its activities uses such a tool as a Bank guarantee in respect of services in General, as well as in respect of exports of services, in particular. Secondly, the transaction is structured in such a way that it involves our sister organization - "Export insurance company "KazakhExport" JSC, which provided insurance coverage of guarantees of the DBK. We are pleased to use the synergy of cooperation of "Baiterek" Holding's subsidiary companies in order to promote the development of Kazakhstan's non-resource exports, as well as the export of services of Kazakhstani engineering companies”,- emphasized Vladimir Lee, Senior Banker of the Directorate for work with clients of DBK.
The construction of a gold-processing plant at the Kyrgyz "Dzheruy" production field with a capacity of 1.3 million ore processing per year is planned to be completed in 2020.
