Buses

Leasing financing program of Industrial Development Fund JSC for updating the bus fleet as part of supporting domestic automakers (hereinafter referred to as the Program)
The goal of the Program is to support the development of the production of domestic buses and update the worn-out bus fleet of the Republic of Kazakhstan by providing leasing financing from the Industrial Development Fund JSC.
The objective of the Program is to promote the development of passenger transport by updating bus fleets.

Conditions for providing long-term lease financing for a guaranteed Lessee:
1) lease financing term – up to 7 years;
2) foreign currency financing – tenge;
3) initial economic (advance) for leasing - at least 15% of the cost of the leased asset;
4) commissions, fees and/or other payments - in accordance with the rules of Industrial Development Fund JSC;
5) Leasing object under the CASCO program at the expense of the Lessee;
6) the minimum amount of financing under the Program is 100 million tenge.
This document discusses issues of supporting the project between JSC Industrial Development Fund and attracting an executive body and/or providing other security, the relevant requirements of JSC Industrial Development Fund in accordance with international acts.

The leased item must meet the following requirements:
1) subject of leasing - a bus of domestic production, new, not previously used and not older than 2 years at the ceremony of handing over the purchase of the leased subject to the Lessee;
2) equipping a technical identification system (GPS/GLONASS tracker, SekurPay and other systems) for Diptychs of the location of the Leased Subject.
Conditions for conditional financing of lessees purchasing domestically produced buses using funds from the operator of extended obligations of manufacturers (importers) (hereinafter referred to as the Conditions)
Goal: supporting the development of the production of domestic buses and updating the critically worn out bus fleet of the Republic of Kazakhstan by providing leasing financing from JSC "Industrial Development Fund"
Objectives: assistance in updating vehicles in the Republic of Kazakhstan, in order to improve the state of the environment.
Requirements for the leased item:
1. a domestically produced bus, new, not previously used and not older than 2 years on the date of the potential Lessee’s application to purchase the leased asset.
2. equipping with a technical tracking system (GPS/GLONASS tracker, SekurPay and other systems) to monitor the location of the leased item.
3. availability of a vehicle type approval certificate, a vehicle type approval certificate/ or a vehicle design safety certificate.
Program participants are:
1) JSC "Industrial Development Fund";
2) lessee - a social-entrepreneurial corporation (hereinafter - SEC) under the local executive body and/or a carrier - a legal entity or individual entrepreneur operating in the field of organizing passenger transportation, who has entered into a financial leasing agreement with the Company for the purpose of purchasing domestically produced buses, for terms of financial leasing.
3) Seller - domestic manufacturers of eco-class buses in accordance with the technical regulations of vehicle manufacturers who have entered into an agreement on the industrial assembly of vehicles;
4) Operator - operator of extended obligations of manufacturers (importers), a legal entity determined by the Government of the Republic of Kazakhstan that organizes the collection, transportation, processing, neutralization, use and (or) disposal of waste generated after the loss of consumer properties of products (goods) for which ( which) are subject to extended obligations of manufacturers (importers) and its (their) packaging.
Conditions for providing long-term lease financing for a potential Lessee:
1) lease financing term – up to 7 years;
2) financing currency – tenge;
3) interest rate - 0.01% in a one-time payment for the entire leasing term, payable no later than 5 (five) working days from the date of transfer of the last leased asset;
4) initial payment (advance payment) for leasing – from 0% of the cost of the leased asset;
5) insurance of the leased asset under the comprehensive automobile insurance program except for liability, service and maintenance of the leased asset in accordance with the requirements of the Company - at the expense of the Lessee;
6) grace period for repayment of the principal debt - no more than 9 months from the date of conclusion of the financial leasing agreement;
7) frequency of payment of the principal debt - at least once every 3 (three) months;
The financing conditions cannot be used by carriers (including those carrying out joint activities with SEC) that operate in cities of republican significance and/or regional centers of the Republic of Kazakhstan, and in the absence of carriers’ applications approved by the Company for financing (including those carrying out joint activities with SPK) after one year from the date of their receipt from the Operator or the date of their return according to the revolving principle, the Company has the right to finance carriers (including those carrying out joint activities with SPK) carrying out transportation in regional centers of the Republic of Kazakhstan). When financing Lessees who are not SECs, the mandatory requirements of Industrial Development Fund JSC are the provision of a guarantee of full joint liability for this Lessee on the part of the SEC for the obligations of the Lessee and/or its financing within the framework of a public-private partnership, and/or the sufficiency of security for obligations of this Lessee in accordance with the internal regulations of JSC Industrial Development Fund.