Industrial Development Fund JSC (part of the National Managing Holding “Baiterek” Group JSC) (hereinafter referred to as the Fund) demonstrates sustained growth across key indicators. As of the end of the first half of 2024, the Fund's portfolio reached 1.6 trillion KZT, with the majority consisting of small and medium-sized business projects—1,320 projects, which account for 93.2% of the total number of supported projects. In March of this year, dividends totaling 23.5 billion KZT were paid, equivalent to 100% of the net profit for 2023. Investments attracted to the economy over the half-year amounted to 357.5 billion KZT.
The Fund operates under the Concept for the Development of the Manufacturing Industry of the Republic of Kazakhstan for 2023–2029, which includes financing at interest rates ranging from 3% to 9%, with a 3% rate for light industry projects.
The Fund's portfolio includes 82 financed projects in the manufacturing industry with a total amount of approximately 709 billion KZT. Of these, 32 projects, totaling 255.7 billion KZT, were supported in the first half of 2024.
In the development of transportation infrastructure, the leasing tool provided by the Fund has enabled the renewal of more than 4,600 buses, including 450 buses in 2024. Previously, in collaboration with the Ministry of Education of the Republic of Kazakhstan, 515 school buses were updated across 16 regions of the country.
In order to enhance the country's transportation and logistics potential, the Fund has obtained 157 passenger and 2,000 freight cars this year.
Additionally, the Fund is actively implementing ESG principles by supporting projects aimed at sustainable development. By the end of the current year, the Fund plans to receive an ESG rating. In the first half of 2024, the Fund successfully conducted its debut issuance of social bonds on the AIX exchange, aimed at acquiring ambulances for the Akmola and Kyzylorda regions.
As part of the Concept for Kazakhstan's transition to a “green economy”, the Fund, in cooperation with the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan, has launched a program for the recycling, sorting, and disposal of waste. This program has established a pool of investment projects in waste management funded by recycling payments, with projects worth approximately 70 billion KZT to be financed in 2024.
This year, 24 financed projects totaling approximately 209 billion KZT will be put into operation in Aktobe, Almaty, Atyrau, Zhambyl, Pavlodar, Karaganda, North Kazakhstan, and Kostanay regions, as well as in the cities of Almaty, Astana, and Shymkent, and in the Abai and Zhetysu regions. These projects are expected to create and sustain over 4,600 jobs in the manufacturing industry.
According to the Industrial Policy Law enacted in December 2021, the Fund finances projects exclusively in national currency, with no foreign currency transactions or loans involved. It is important to note that the Fund does not aim for profit maximization. Its operations are based on break-even financial principles. The margin only covers operational expenses and project risks.
To optimize business processes and reduce application review times, a “Personal Account” system has been developed and implemented for submitting applications and contracts online (this procedure simplifies application submission and shortens processing times as personal presence is not required, since the application is signed with a digital signature key).
To widely reach potential applicants, the Fund has established a regional directorate with specialists in five regions of the country (providing consultancy to potential applicants on application preparation, document collection, and submission for review): Atyrau city, Shymkent city, Pavlodar city, Kostanay city, and Aktau city.
