Manufacturing industry

In accordance with the Concept for the Development of Manufacturing Industry of the Republic of Kazakhstan for 2023-2029, approved by the Resolution of the Government of the Republic of Kazakhstan dated December 20, 2018 No. 846, as amended on March 28, 2023 by Resolution of the Government of the Republic of Kazakhstan No. 259, financing is carried out on the following terms:

1. 1. Financing of manufacturing industry projects is provided by Industrial Development Fund Joint Stock Company to subjects of industrial and innovation activity, leasing financing of projects, including projects included in the program of joint actions in the field of international production cooperation, projects for creating new production facilities and modernizing existing production facilities.

If it is necessary to increase the volume of financing for manufacturing industry projects, financing is allowed at a rate of no more than 12.6% for the final borrower when mixing budget funds with attracted funds in a proportion where the share of budget funds is at least 70%, depending on the rate of attraction of other funds.

The subject of industrial and innovation activity ensures participation with monetary funds in the project implementation in the amount of at least 20% of the total financing amount (for projects aimed at increasing production localization, participation with monetary funds in the project implementation in an amount of less than 20% is allowed). The financing amount must be at least 7 billion tenge for manufacturing industry projects and infrastructure projects, with the exception of machinery manufacturing. Financing is provided for a term of no more than 15 years.

To obtain financing, the subject of industrial and innovation activity submits to Industrial Development Fund Joint Stock Company a package of documents, the list of which is approved by the internal documents of Industrial Development Fund Joint Stock Company. The procedure and terms for providing financing are determined by the internal acts of Industrial Development Fund Joint Stock Company.

2. 2. Within the framework of leasing financing, support will be provided in the following areas:
Renewal/modernization of vehicles and special equipment; renewal of the fleet of agricultural machinery and buses through the leasing financing mechanism of Industrial Development Fund Joint Stock Company. Leasing financing is provided in tenge for vehicles and special equipment for a term of no more than 7 years, the remuneration rate for applicants should be 7% per annum, while the ratio of budget funds and other funding funds of Industrial Development Fund Joint Stock Company should be 80/20. The advance payment is at least 15% at the expense of local budget funds or the lessee's own funds (in case of repayment of leasing payments at the expense of republican or local budget funds, financing without an advance payment is allowed). At the same time, for bus models produced by a method that includes welding and painting operations, the advance payment is at least 5%;

Renewal of the fleet of vehicles engaged in freight transportation. Leasing financing of vehicles engaged in freight transportation is provided in tenge through Industrial Development Fund Joint Stock Company for a term of no more than 7 years, the remuneration rate for applicants should be 7% per annum, while the ratio of budget funds and other funding funds of Industrial Development Fund Joint Stock Company should be 80/20. The advance payment is at least 30% at the expense of local budget funds or the lessee's own funds (in case of repayment of leasing payments at the expense of republican or local budget funds, financing without an advance payment is allowed);

Leasing financing of applicants acquiring vehicles, special-purpose automotive equipment, with the exception of agricultural machinery (hereinafter referred to as vehicles), is provided in tenge through Industrial Development Fund Joint Stock Company for a term of 3 to 5 years with a remuneration rate for applicants of 3% per annum. The advance payment must be at least 30% (in case of repayment of leasing payments at the expense of the National Road Management Operator, with one hundred percent state participation in the authorized capital, exercising the powers established by the Law of the Republic of Kazakhstan "On Highways," financing without an advance payment is allowed). Leasing financing based on the public-private partnership mechanism is allowed. The sources of leasing financing will be republican budget funds;

Leasing financing can be used by subjects of industrial and innovation activity, state institutions, local, central and state executive bodies, institutions, state communal enterprises on the right of economic management and state treasury communal enterprises of the Republic of Kazakhstan, the National Operator for road management, with one hundred percent state participation in the authorized capital, exercising the powers established by the Law of the Republic of Kazakhstan "On Highways".

Renewal of the fleet of domestically produced medical equipment in tenge through Industrial Development Fund Joint Stock Company for a term of no more than 7 years with a remuneration rate for applicants of 3% per annum. Budget funds are allocated by increasing the authorized capital and/or budget lending to Industrial Development Fund Joint Stock Company. The advance payment is at least 30%. In case of repayment of leasing payments at the expense of republican or local budget funds, financing without an advance payment is allowed. Leasing financing of medical equipment can be used by healthcare subjects: local executive bodies, state institutions, state communal enterprises on the right of economic management and state treasury communal enterprises, communal treasury enterprises of the Republic of Kazakhstan, as well as medical organizations with private ownership.