Under the terms of the agreement, DBK provided the company with a revolving credit facility of KZT 1 bln for 36 months under a loan insurance of its sister company Export Insurance Company “KazakhExport” JSC, as part of the Nurly Zhol state program. The company plans to use the funds to purchase raw materials, electricity, compressed air and components, which will allow it to increase the volume of exported products in the future.
“About one third of the country's manufacturing output comes from enterprises in Pavlodar region. One of the largest enterprises is Foundry Production LLP , which exports shaped castings to Europe, Russia, and Belarus and Kyrgyzstan. It is important for the Development Bank, as the country's main institution for financing the manufacturing industry, to support export-oriented enterprises, which sell products with high added value, especially during the post-coronavirus pandemic”, - noted Vladimir Lee, Senior Banker of the Client Relations Directorate.
Foundry Production LLP is the only certified producer in Kazakhstan of medium-sized railway car casting - the rightful owner to supply these products both to the domestic market and to railway enterprises in the CIS and Baltic countries. All products manufactured by the plant for railways have been certified, including by the Russian Federal Railway Transport Certification Register.
The company manufactures over 120 products of small casting - friction wedge, centering beam, bracket, brake shoe, chock, chock holder; and medium casting - automatic coupling, traction clamp, front and rear stops, etc., which are used in the railway, mining and metallurgical, oil and gas and power sectors.
For reference. DBK attracted KZT 95 bln. to support exporters under the Nurly Zhol state program and provided support to 21 enterprises exporting domestic products. As of 1 June 2021 the support amounted to KZT 594.8 bln., with total exports from 2015 to 2020 amounting to KZT 748.2 bln. Finished products for KZT 151.2 bln. were exported in 2020. The list of exported products includes power oil and dry transformers, mainline diesel locomotives, vegetable oil, confectionery products, dairy products, soft drinks, ammonium nitrate, phosphorus products, lubricating oils and metallurgical products, etc.
- A revolving credit line is provided for the purchase of raw materials and materials for the production of finished products with subsequent export;
- Target industry-manufacturing industry;
- Availability of an export contract (s);
- Loan term - from 1 to 3 years;
- Loan currency-tenge (KZT);
- The minimum loan amount is KZT 1 bln;
- The final interest rate for borrowers is no more than 8%.
Development Bank of Kazakhstan JSC (DBK) is a national development institution for modernization and development of non-resource and infrastructure sectors of Kazakhstan's economy, established in 2001. The main activities: development of production infrastructure and manufacturing industry, promotion and attraction of foreign and domestic investments into the country's economy.
Public Relations Service of Development Bank of Kazakhstan JSC: +7 (7172) 79 26 08 (www.kdb.kz, facebook.com/kdb.kz, Twitter@KDBkz)