Industrial Development Fund JSC, with the support of Baiterek National Investment Holding and Damu Entrepreneurship Development Fund JSC, is launching a new leasing financing program for modernization of production capacities of existing small and medium-sized businesses in the manufacturing industry.
The program is aimed at increasing support for SME subjects for their technical equipment/re-equipment, acquisition of new equipment, and expansion of production capacities of enterprises.
Leasing financing within this program has a phased mechanism. The total budget for the 1st stage is 5 billion tenge. When funds are allocated within the following stages, additional information will be provided.
Main terms of the program:
- Limit per one Lessee/Group of companies – from 1 to 300 million tenge.
- Remuneration rate – 12.6%.
- Financing term – from 3 to 5 years.
- Participation of the lessee with own funds – 10% of the cost of the leasing object.
- The term of operational activity of the Lessee must be a full previous calendar year.
- Leasing object – new equipment, not previously used, with a manufacturing date of no more than 3 years as of the date of application submission, having passed full customs clearance (acquisition of self-propelled equipment and medical equipment is not allowed).
- Seller/supplier of the leasing object – domestic manufacturing plant or official distributor/dealer of the equipment manufacturing plant, being a resident of the Republic of Kazakhstan and having official rights and licenses/certificates (if necessary) for the equipment (Leasing object) and production capabilities to provide warranty and service maintenance for at least 1 (one) year from the moment of signing the act of commissioning the equipment.
- Grace period – not available for remuneration, for principal debt – up to 6 months from the moment of signing the Financial Leasing Agreement.
- Security – leasing object, personal guarantee of beneficial owners of the Lessee in the form of a legal entity. Additional collateral is not required.
- Repayment frequency – monthly equal payments.
Stop factors for obtaining leasing financing:
- Presence of overdue debt as of the date of consideration;
- Presence of official negative information that casts doubt on the possibility or expediency of concluding and (or) executing a transaction, including information about the Lessee being at the stage of reorganization, rehabilitation, in enforcement proceedings, as well as other negative information confirming the presence of improper operational activity and signs of unreliability of the Lessee;
- The term of operational activity of the Lessee is less than one full operational calendar year at the time of application submission;
- Turnover for the previous calendar year is less than one and a half times the cost of the Leasing object;
- Being on the sanctions list of the Lessee/beneficial owners of the Lessee and/or Supplier/beneficial owners of the Supplier;
- Presence of overdue tax debt;
- The sphere of activity of the Lessee is related to the following industries:
- production of weapons;
- production of alcoholic products;
- production of drugs, narcotic drugs and psychotropic substances;
- production of tobacco products;
- residential construction, if such construction is not an integral part of facilities in the hotel services sector;
- geological exploration works;
- gambling business.
* types of activities prohibited by the legislation of the Republic of Kazakhstan.
Within this program, selection of potential applicants is conducted through branches of Damu Entrepreneurship Development Fund JSC, which are available in all regions of the republic.
Financing of approved projects is carried out by Industrial Development Fund JSC.
