“Baiterek” Holding Is Implementing a New Investment Policy
Tengrinews information portal has published a material on the implementation of a new investment policy by Baiterek Holding.
Now the company’s investment policy is focuses on the projects of private sector of the economy, contributing to the sustainable socio-economic development of the country. As a rule, large capital-intensive projects in non-resource-based industries characterized by long payback periods and low profitability are not attractive for financing by commercial banks. However, such projects that are long-term, complex, implemented in the manufacturing industry and infrastructure, are in the Holding’s priority.
The tool such as the project development index has been introduced to the new investment policy: this will allow prioritizing the most significant socio-economic projects and giving them more favorable conditions. A project with a high development index should correspond to the priority sector defined by the state programs, promote the increase in jobs and labor productivity, assume a significant share of exports in production and increase the volume of output per unit of invested funds.
Following the results of 2018, the holding occupies 48 percent of the market for long-term lending of non-resource-based sectors of the economy. Thus, today, there are 63 major projects worth 5.3 trillion tenge in the loan portfolio of the Development Bank of Kazakhstan (a subsidiary of Baiterek Holding), the direct investment funds’ portfolio belonging to Kazyna Capital Management JSC (another subsidiary of the Holding) consists of 43 projects at the amount of KCM investments of more than 144 billion tenge, and the leasing portfolio of BRK-Leasing based on the results of the year amounted to 191.7 billion tenge.
Among the Holding’s successful projects, the construction of a processing plant of Aktogai Mining and Processing Complex in East Kazakhstan, the construction of a plant for the production of power transformers in Shymkent, the establishment of a complex for the production of railway wheels in Pavlodar Oblast, the modernization of a plant for the production of mineral fertilizers in Mangystau Oblast, and pre-export financing of Bayan Sulu Confectionary Factory are among the successful projects of the Holding. The last project is being implemented in the framework of “Nurly Zhol” State Program.
– We have been working under the joint program with Baiterek National Managing Holding JSC for more than three years: in 2015-2016, Bayan Sulu Confectionery Factory received two tranches for a total amount of 3.59 billion tenge. In 2018, we felt a natural increase in exports: new markets and partners appeared. Today, Bayan Sulu exports about 30 percent of the total production capacity. We have done a lot of work together with the holding, and now we are glad to see its real result, – said Timur Sadykov, the President of Bayan Sulu JSC.
In addition, the holding is actively participating in the project for construction of Saryarka Main Gas Line, which is a part of the President’s Five Social Initiatives and will allow additionally providing 2.7 million residents of Nur-Sultan, Karaganda and Akmola oblasts with gas.
Baiterek Holding, the objective of which is to modernize the economy and attract foreign investment in the Kazakhstani market, was established six years ago on behalf of the First President of the Republic of Kazakhstan and during that period of time managed to justify high confidence, becoming a unique development institution. The company includes 11 subsidiaries in the field of industrial development, promotion of national products exports, development of SMEs, implementation of tasks in the housing and construction sector and venture financing.