Presentation about National Managing Holding
“Baiterek” JSC
Astana
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Holding’s Strategy 2014-2023
Mission
to promote sustainable economic development of Kazakhstan through funding and support of priority sectors of the economy for implementation of public policy and State programs, finding solutions for socially-oriented tasks and reaching goals set by the “Strategy 2050”
Vision by 2023
the main financial agent of the Government of the Republic of Kazakhstan that supports diversification, modernization and sustainable development of the economy and provides solutions for socially-oriented tasks of the state
The main goals and objectives• Provision of full range of financing instruments
• Support of small and medium enterprises
• Support of new, modern economic sectors and innovation development of the economy
• Support of export activities of national companies
• Support and promotion of affordable housing
About Holding
Strengths
•International rating agency Fitch Ratings and S&P has assigned
Baiterek Holding long-term credit rating “BBB+”
•Wide range of non-financial and financial instruments•Experience in investing to large and long-term projects in a wide range of industries
•Experience in supporting SMEs•Experience of successful cooperation with international financial institutions•Possibility to attract funding from government budget •Board of Directors includes key government officials and is chaired by the Prime Minister of Kazakhstan
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Board of directors
Chairman of the board, Prime-Minister Karim Massimov
First deputy prime-minister
Bakhytzhan Sagintayev
Minister of financeBakhyt Sultanov
Minister of investment and development Asset Issekeshev
Minister of national economy
Yerbolat Dossaev
Head of Department in Executive office of the
President Daulet Yergozhin
Chairman Kuandyk Bishimbayev
Independent directorKlaus Mangold
Independent directorThomas Mirow
Independent directorPhilip Yeo
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Baiterek Holding’s group of companies
Development Bank of Kazakhstan JSC
Kazyna Capital Management JSC
Investment Fund of Kazakhstan JSC
Public Private Partnership Advisory Center LLP
National Agency of Technological Development JSC
Export Credit Insurance Corporation JSC
Entrepreneurship Development Fund “Damu” JSC
House construction savings bank of Kazakhstan JSC
Kazakhstan Mortgage Company MO JSC
Mortgage Guarantee Fund of Kazakhstan JSC
Distressed assets fund JSC
Investment
sector
Entrepreneurship &
Innovation sectors
Housing sector
2010-2014 State Program for
accelerated industrial and
innovative development of the Republic of
Kazakhstan
Business Road Map – 2020
Program
Affordable Housing – 2020
Program
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Holding’s results on 30.06.2014
Net profit in 2013
7bln.
tenge
12bln.
tenge
Net profit in 2014
5bln.tenge
increase
increase
* Data from preliminary reports
Holding’s share capital
722bln. tenge*
Total number of employees of Holding group
2427 people*
Total assets of Holding’s subsidiaries
2 116 bln. tenge*
Total net profit of Holding’s subsidiaries
12 bln. tenge*
Development Bank of Kazakhstan JSC (DBK)
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Established in 2001 with Presidential Decree and Law “On the Development Bank of Kazakhstan”
Assisting the diversification of the economy of Kazakhstan Development of the infrastructure and industries involved in raw material
processing Enhancing effectiveness of government investment activity Facilitating foreign and domestic investments into Kazakhstan
Loan portfolio to total assets ratio - 41% (at the beginning of the year - 34%)
In 2013 DBK approved and implemented Interbank lending program to support industrial-innovative development of Kazakhstan by providing lending to commercial banks to finance projects in priority sectors of economy
Allocate45 bln. tenge
DBK
Commercial banks
Loans to
0.5 to 4.5 bln. tenge
SME
Interbank lending program
Loan term up to 5 years
Interest rate ≤ 11.5%(average market rate 13-
15%)
Currently 38 bln. tenge allocated to
commercial banks under the program
Investment activity of DBK
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246 projects(including DBK leasing)
Approved for financing $14,5 bln. DBK participation – $7,8 bln.
2001-1HY 201477 projects
23 thousands
Launched $4,9 bln. DBK participation – $2,6 bln.
Total work places
7 project & 3 export operations
Approved for financing $1,8 bln. DBK participation – $912 mln.
2013 &1HY 20145 projects
~700
Launched (equipment delivered) $696 mln.
Total work places
Map of Industrialization & Productivity 2020 Program 30 projects & 12 leasing operations
Approved for financing $8,6 bln. DBK participation – $4,7 bln.
From the beginning of realization of SPAIID 2010-1HY 2014
31 projects(including DBK leasing)
~11 thousands
Launched $2,9 bln.
Total work places
8
Accent LogisticsCosts: $27,4 mln.
Bias TechCosts:$21 mln.
Chimbulak DevelopmentCosts: $205.9 mln.
ABK MAXATCosts:$20 mln.
Taraz Metallurgical PlantCosts: $79 mln.
Uralsk Gas Turbine stationCosts: $69 mln.
AgromashholdingCosts :$40 mln.
Kazakhstan Electrolysis PlantCosts : $1 080 mln.
Kazakhstan rail car manufacturing CompanyCosts : $56 mln.
Akshabulak gas turbine power plant
Costs: $129 mln.Kazakhstan Petrochemical Industries Inc.
Costs: $1 946 mln.
AgromashholdingCosts: $25 mln.
ZapchastCosts: $19,05 mln.
Aktau International AirportCosts: $75 mln.
Moinak Hydroelectric Power Station
Costs : $361 mln.
Atyrau Oil Refinery Plant
Costs: $2 956 mln.
KazakhcementCosts : $130 mln.
Borovoe Tourism CityCosts: $89 mln.
Steel ZincCosts: $9 mln.
Karaganda EnergocenterCosts: $235 mln.
Euras Caspian SteelCosts : $131 mln.
Commissioned
Titan Fuel and Energy ComplexCosts : $1,1 mln.
Ontustyk Kurylys ServiceCosts: $6,6 mln.
SaryarkaAvtoPromСумма проекта: $73,5 mln.
Kentau Transformer PlantCosts: $5,6 mln.
Asia AutoCosts: $2,6 mln.
Implemented Productivity 2020
Shygys Construction Management
Costs : $3 mln.
Maikuduk Poultry FactoryCosts: $13 mln.
Steel ZincCosts: $2,5 mln.
MunaimashCosts : $10 mln.
CausticCosts: $90 mln.
Ust-Kamenogorsk Titanium Magnesium PlantCosts : $135 mln.
Investment fund of Kazakhstan JSC (IFK)
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established with the Decree of Government of the Republic of Kazakhstan dated May 30, 2003 № 501 "On creation of Investment Fund of Kazakhstan JSC”
encouraging private investment in the non-oil sector of the economy through co-financing investment projects and participation in the management of these project
rehabilitation of distressed projects
Invested more than 34 billion tenge in 36 projects since the establishment of the fund
Returned assets worth 10.2 billion tenge Advantages of investing in the projects of IFK
Entering the common market of a United Economic Area (UEA - Kazakhstan, Russia, and Belarus), with a population of around 170 million people
Attractive investment climate in Kazakhstan. The Republic ranks a leading place in the region according to the ratings of investment attractiveness
In the ranking of a favorable business environment (Doing Business 2013), Kazakhstan ranks in 49th place
In the ranking of Forbes Best Countries for Business (2011), Kazakhstan ranks the 80th place
According to the report of PricewaterhouseCoopers “Paying Taxes 2013”, Kazakhstan ranks the 17th place in the rating of a favorable tax climate
Advices and assistance from highly qualified staff of professional managers of the Fund, experts in their field
Please see attachment for full pipeline of the projects of the Investment Fund of Kazakhstan.Detailed information on any of the projects will be provided upon request
Kazyna Capital Management JSC (KCM)
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a fund of private equity funds established in May 2007 by the initiative of the President of the Republic of Kazakhstan to attract institutional investors, as well as to promote effective private equity in Kazakhstan
Key parameters Baiterek Venture Fund Kazakhstan Infrastructure Fund
Target fund size
► Up to $ 50 million - at the first closing► $ 100 million - a target capitalization
► Up to $500 million (may be increased up to $1 billion in the long-term)
Term► 10 years (5 years – investment period; 5 years –
exit period)► 10 - 15 years (10 years – investment period; 5 years –
exit period)
Investment geography
► Kazakhstan ► Kazakhstan and Customs Union countries
Investors ► Kazyna Capital Management ► KCM at the first closing ► Other international institutional investors
Target sectors
► Priority sectors of the State Program on Accelerated Industrial-Innovative Development (SPAIID) and projects at an early stage of development
► Projects requiring capital restructuring► Projects requiring rehabilitation measures
► Power industry► Health care► Transport infrastructure► Public utility
Islamic Infrastructure Fund
226,5млн. $
Entrepreneurship Development Fund “Damu” JSC
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established in accordance with the Decree of Government of the Republic of Kazakhstan dated April 26, 1997 № 665 in order to encourage the formation and growth of small businesses in Kazakhstan and increase efficiency of state funds allocated to support small businesses
providing funds for lending to commercial banks loan guarantee and interest rate subsidies under the program
“Business Road Map – 2020” skill-building and entrepreneurs support facilities by the program
“Business Road Map – 2020” and own programs
Fund-for-lending Interest rate subsidies Loan guarantee
Skill-building
2013 & 1Q 2014
113 650bln. tenge
2 609lenders
237 803mln. tenge
1 723 entrepreneurs
176 entrepreneurs
24 200 entrepreneurs
Accumulated results
793 807 bln. tenge
14 902lenders
735 600mln. tenge
3524entrepreneurs
284 entrepreneurs
56 927 entrepreneurs
Service centers for entrepreneurs
Mobile entrepreneurship support centers
Entrepreneurship support centers
in monocities
In 17regional centers, Astana, Almaty
In 14areas
In 27monocities
National Agency for Technological Development JSC (NATD)
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Innovation support tools
Innovation grantsTechnological business
incubation
2013
more than
186applications processed
44projects approved
total amount
822.9mln.tenge
more than
164applications processed
20projects approved
total amount
307mln.tenge
2010-2013
more than
1000applications processed
210projects approved
total amount
9 648 mln. tenge
more than
600applications processed
116projects approved
total amount
971mln. tenge
Established in 2003 as National Innovation Fund JSC In 2012 reorganized into the National Agency for Technological Development JSC
under the Ministry of Industry and New Technologies of Kazakhstan
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Public Private Partnership Advisory Center (PPP АС)
• Established on March 19, 2014 in accordance with the recommendation given in the framework of the third meeting of the Coordinating Council for Public-Private Partnership under the Government of the Republic of Kazakhstan, September 13, 2013
• National Managing Holding “Baiterek” JSC (share – 75%)• Kazakhstan PPP Center JSC– under the Ministry of Economy and
Budget Planning (share – 25%)
• to support infrastructure development in the Republic of Kazakhstan by providing the advisory services during the implementation of infrastructure projects
• Advisory support of infrastructure projects (including PPP)• Preparation of feasibility studies of PPP projects• Consulting the state bodies and potential investors on project
structuring
Thank you for your attention!
National Managing Holding “Baiterek” JSC
Registered address:House 10, Orynbor street
Current address:House 8, Block B, D.Kunayev street
Astana, 010000 Republic of Kazakhstan
Telephone: + 7 7172 91 91 00Fax: + 7 7172 91 91 15
Email: [email protected]: www.baiterek.gov.kz