The documents to start the funding of two breakthrough projects have been signed

December 12. Samruk-Kazyna. Astana

The documents to start the funding of two breakthrough projects have been signedToday, during the visit of Chairman of People’s Republic of China Hu Jintao to the Republic of Kazakhstan, Chief Executive of JSC “Sovereign Wealth Fund “Samruk-Kazyna” K. Kelimbetov met Chief Executive – President of the Export-Import Bank of China Li Zhogu.

During the meeting, K. Kelimbetov and Lee Zhogu summarized the work done on the implementation of the initiative of President of Kazakhstan Nursultan Nazarbaev on providing corporate loan to Kazakhstan by China in the amount of $ 10 billion. The Parties noted that at present the unbound part of the loan in the amount of $ 1,5 billion was utilized and currently, the arrangements for the utilization of the second tranche of $ 400 million are finalized. In addition, the Parties discussed the basic principles of utilization of the restricted part of the loan in the amount of $ 3,5 billion and sounded priority projects that should be implemented within the given line.

As a result of the meeting the Ceremony of signing Memoranda of understanding for financing the construction of the first integrated gas chemical complex in the Atyrau region, and for financing the construction of steel plant with capacity of 500 000 tons of granulated metal per year between JSC “Development Bank of Kazakhstan” and Eximbank of China was held. The documents were signed by Chief Executive of the Fund K. Kelimbetov and President of Eximbank of China Li Zhogu.

JSC “Sovereign Wealth Fund “Samruk-Kazyna” was established in accordance with the Decree of Presidenl dated October 13, 2008 № 669 “On some measures on competitiveness and sustainability of the national economy through the merger of JSC “Sustainable Development Fund “Kazyna” and “Kazakhstan Holding for Management of State Assets “Samruk” to improve the competitiveness and sustainability of the national economy and prevention of factors of possible negative impact of changes in world markets on economic growth of the country.

JSC “Development Bank of Kazakhstan” was created in 2001 and included in JSC “Sovereign Wealth Fund “Samruk-Kazyna” The main activities of the Bank are to improve and enhance the efficiency of public investment, to develop industrial infrastructure and manufacturing industries, to assist in attraction of foreign and domestic investment in the national economy.

Export-Import Bank of China was founded in 1994 and is directly accountable to the State Council of China. Key features of the Eximbank of China include support and construction of basic industries, financial support of the leading public corporations, including their investment activities; performance of obligations on loans from international financial organizations.

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Comments of Kairat Kelimbetov to the conclusion of the Contract with Export-Import Bank of China

December 12. Samruk-Kazyna

You know that during the visit of the Head of State this year to China it was signed an agreement for allocation of $10 billion credit line from the Government of China.

By now, the agreements directly between the Eximbank of China, “Samruk-Kazyna” Fund and “Development Bank of Kazakhstan” on the allocation of $ 5 billion dollars [of those $ 10 billion] have been finalized.

We have just signed individual agreements in the framework of funding breakthrough investment projects in Kazakhstan. This Memorandum of Understanding on project lending SBS-Steel (project of a metallurgical plant in Aktobe region) and the project of gas-chemical complex in Atyrau region, which will start next year. You know that they are very important projects for the development of our economy.

In addition, we expect to sign the agreement in the afternoon on the allocation of funding for the construction project to produce aromatic hydrocarbons on the basis of Atyrau refinery.

Thus, you can see that the entire line of $ 5 billion has a specific content already. Almost all the breakthrough projects, which are available in the portfolio of Samruk-Kazyna, will be implemented, including through a credit line of China Eximbank.

And we also expect that after lunch it will be announced the signing of the agreement between Development Bank of China (DBC) and “Samruk-Kazyna” Fund on a new credit line of $ 3 billion, also in the framework of agreements between the Leaders of our countries. These funds will finance projects in metallurgy and infrastructure.

In addition, we are working on the possibility of funding from the Eximbank of the second stage of the aluminum plant in Pavlodar region – it is a project of ENRC, and a number of projects of “Kazakhmys”.

All this shows what a great interest is caused by the economic development of Kazakhstan. And what a great potential for economic development of Kazakhstan have relationships with the financial and credit institutes of the PRC.