National Holding Company "Baiterek" is implementing a new investment policy. Now the investment policy of the holding is focused on projects of the private sector of the economy contributing to the sustainable social and economic development of the country. As a rule, large capital-intensive projects in the non-raw-materials sectors, characterized by long payback periods and low profitability, are not attractive for financing by commercial banks. However, it is precisely such projects - long-term, complex, implemented in the manufacturing industry and infrastructure - that are the holding's priority.
The new investment policy introduces such a tool as the project development index, which will allow to prioritize the most significant social and economic projects and give them more favorable conditions. A project with a high development index should correspond to the priority sector defined by the state programs, contribute to the increase of jobs and labor productivity, assume a significant share of exports in production and increase the volume of output per unit of invested funds.
According to the results of 2018, the holding occupies 48 percent of the market of long-term crediting of non-raw materials sectors of the economy. Thus, in the loan portfolio of the "Development Bank of Kazakhstan" (a subsidiary of the "Baiterek" holding) to date, 63 large projects worth 5.3 trillion tenge, the investment portfolio of private equity funds, which are part of "Kazyna Capital Management" JSC (another subsidiary of the holding company), consists of 43 projects for the amount of investments of KKM more than 144 billion tenge, and the leasing portfolio of the company "DBK-Leasing" at the end of the year amounted to 191.7 billion tenge.
Among the holding's successful projects are the construction of the Aktogay mining and processing plant in Eastern Kazakhstan, the construction of a power transformer plant in Shymkent, the creation of a railway wheel production complex in the Pavlodar region, the modernization of a fertilizer plant in the Mangistau region and pre-export financing of the confectionery plant of "Bayan Sulu" JSC. The latter project is being implemented within the framework of the state program "Nurly Zhol".
"We have been working under a joint program with JSC NHC "Baiterek" for more than three years already - in 2015-2016 the "Bayan Sulu" confectionery factory received two tranches for the total amount of 3.59 billion tenge. Already in 2018, we felt a natural increase in exports: new markets and partners appeared. To date, "Bayan Sulu" exports about 30 percent of its total production capacity. We have done a lot of work together with the holding, and now we are glad to see its real result," says Timur Sadykov, President of "Bayan Sulu" JSC.
In addition, the holding is actively involved in the construction of the "Saryarka" gas trunkline, which is one of the "Five Social Initiatives of the President" and will provide gas to an additional 2.7 million residents of the city of Nur-Sultan, Karaganda and Akmola regions.
"Baiterek" Holding, whose task is to modernize the economy and attract foreign investment to the Kazakhstani market, was established six years ago on behalf of the First President of the Republic of Kazakhstan and has managed to justify high confidence, becoming a unique development institution. The company consists of 11 subsidiaries in the field of industrial development, promotion of exports of national products, development of small and medium-sized businesses, implementation of tasks in the housing and construction sector and venture financing."Baiterek" Holding is implementing a new investment policy
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"Baiterek" Holding is implementing a new investment policy
28.03.2019
National Holding Company "Baiterek" is implementing a new investment policy. Now the investment policy of the holding is focused on projects of the private sector of the economy contributing to the sustainable social and economic development of the country. As a rule, large capital-intensive projects in the non-raw-materials sectors, characterized by long payback periods and low profitability, are not attractive for financing by commercial banks. However, it is precisely such projects - long-term, complex, implemented in the manufacturing industry and infrastructure - that are the holding's priority.
The new investment policy introduces such a tool as the project development index, which will allow to prioritize the most significant social and economic projects and give them more favorable conditions. A project with a high development index should correspond to the priority sector defined by the state programs, contribute to the increase of jobs and labor productivity, assume a significant share of exports in production and increase the volume of output per unit of invested funds.
According to the results of 2018, the holding occupies 48 percent of the market of long-term crediting of non-raw materials sectors of the economy. Thus, in the loan portfolio of the "Development Bank of Kazakhstan" (a subsidiary of the "Baiterek" holding) to date, 63 large projects worth 5.3 trillion tenge, the investment portfolio of private equity funds, which are part of "Kazyna Capital Management" JSC (another subsidiary of the holding company), consists of 43 projects for the amount of investments of KKM more than 144 billion tenge, and the leasing portfolio of the company "DBK-Leasing" at the end of the year amounted to 191.7 billion tenge.
Among the holding's successful projects are the construction of the Aktogay mining and processing plant in Eastern Kazakhstan, the construction of a power transformer plant in Shymkent, the creation of a railway wheel production complex in the Pavlodar region, the modernization of a fertilizer plant in the Mangistau region and pre-export financing of the confectionery plant of "Bayan Sulu" JSC. The latter project is being implemented within the framework of the state program "Nurly Zhol".
"We have been working under a joint program with JSC NHC "Baiterek" for more than three years already - in 2015-2016 the "Bayan Sulu" confectionery factory received two tranches for the total amount of 3.59 billion tenge. Already in 2018, we felt a natural increase in exports: new markets and partners appeared. To date, "Bayan Sulu" exports about 30 percent of its total production capacity. We have done a lot of work together with the holding, and now we are glad to see its real result," says Timur Sadykov, President of "Bayan Sulu" JSC.
In addition, the holding is actively involved in the construction of the "Saryarka" gas trunkline, which is one of the "Five Social Initiatives of the President" and will provide gas to an additional 2.7 million residents of the city of Nur-Sultan, Karaganda and Akmola regions.
"Baiterek" Holding, whose task is to modernize the economy and attract foreign investment to the Kazakhstani market, was established six years ago on behalf of the First President of the Republic of Kazakhstan and has managed to justify high confidence, becoming a unique development institution. The company consists of 11 subsidiaries in the field of industrial development, promotion of exports of national products, development of small and medium-sized businesses, implementation of tasks in the housing and construction sector and venture financing.
