The Industrial Development Fund attracts investments in the economy

JSC "Industrial Development Fund" was established on behalf of the Head of state on September 22, 2020 as a development institute, whose activities are aimed at increasing the amount of available financing for manufacturing enterprises and supporting the real sector of the economy.

Continuing the strategy of attracting market funds for the implementation of projects, the fund carried out the third issue of bonds on KASE. Deputy Chairman of the Board Zhanar Ibrasheva told about the details of the issue and the activities of the fund.

The volume of the third issue of bonds amounted to 50 billion tenge with a maturity of 7 years. On November 12, 2021, the bonds were placed on KASE in full, repurchased by second-tier banks, brokerage and insurance companies, at a yield rate of 12.4%. The financial advisor and underwriter of the issue was Halyk Financial.

As for the fund's areas of work, leasing financing is the main activity. An important criterion for the provision of leasing financing is assistance in the implementation of Kazakhstan's industrial and innovation policy, the development of entrepreneurship potential, in particular, the financing of projects that have a socio-economic effect and provide for an increase in labor productivity, the volume of production of products and its exports.

The Fund provides financing for existing and the creation of new industries in such industrial sectors as mechanical engineering, energy, construction and food industries.

Unlike commercial leasing companies, the fund, which implements state programs aimed at supporting domestic enterprises, does not prioritize profit maximization, but is focused on achieving the performance targets of state programs.

Zhanar Shatyrkhanovna, what are the funds raised by the Fund from the placement of this bond issue planned to be used for?

- The funds of the bonds will be used to finance new and ongoing projects and programs of the fund in the manufacturing industry.

Tell us about the previous experience of issuing bonds on the KASE platform?

- The current issue is the third issue of the fund's bonds. The debut issue of bonds in the amount of 50 billion tenge with a maturity of 10 years was carried out in November last year, and the second issue took place in March this year with a similar volume of issue and maturity of bonds. Taking into account the need for funds to finance projects, a decision was made on the third issue of bonds in the amount of 50 billion tenge. In general, we consider the public placement of bonds on the KASE platform to be an effective practice of diversifying funding sources and plan to continue it in the future.

How has the organization's activity changed after the establishment of the Industrial development Fund?

- Since the establishment of the Industrial development Fund, on behalf of the government, the issue of expanding the mandate of the fund is being worked out. This change will be an important step for the fund on the way to transformation as a key industrial development institution capable of providing comprehensive support to domestic enterprises.

The issues of institutional development of the fund are laid down in the draft law "On Industrial Policy", which provides for the status, goals and mandate of the fund. From this point of view, we regard the listing and issuance of bonds on KASE as an important and necessary step that will increase confidence in the fund and expand its opportunities to invest in the economy.