Joint Stock Company "Development Bank of Kazakhstan" (DBK, a subsidiary of JSC "NUH "Baiterek") together with JSC "Nurbank" and JSC "Bank CenterCredit" have signed a syndicated loan agreement. Funds will be provided to the major beverage manufacturer LLP "RG Brands Kazakhstan" to expand production capacities and increase product exports to the Uzbekistani market. It is noted that this is the first syndicated loan agreement for DBK in partnership with Kazakhstan's second-tier banks. JSC "Bank CenterCredit" became the first bank in Kazakhstan to issue a tranche within the syndicate and took on the role of agent bank, representing the interests of all syndicate creditors and providing credit administration services under syndicated loans.
"Syndicated loans allow us to achieve two goals simultaneously. On one hand, we expand the base of long-term financing for our borrowers in the processing industry under favorable conditions, and on the other hand, we involve more private financial institutions in financing large projects in the real sector of the economy," comments Chairman of the Board of DBK Marat Yelibayev.
"One of the bank's priority areas is supporting the real sector of the economy. That's why we decided to participate in this initiative. The BCC team was the first in Kazakhstan to develop a product that provides administration services within syndicated financing. We are improving, expanding our capabilities, and ready to provide agent bank services in similar deals," notes Nurlan Shegebaev, Vice-President of JSC "Bank CenterCredit".
"Nurbank highly values the positive effect and significance of the syndicated loan mechanism for business and industry representatives, and consequently for the entire state's economy. Such financial collaboration allows not only increasing lending volumes to the real sector of the economy but also offering clients the most comfortable conditions. Moreover, we highly appreciate the opportunity of joint cooperation with DBK and Bank CenterCredit in implementing syndicated financing programs," said Chairwoman of the Board of Nurbank Gulnara Musataeva.
"The syndicated loan was successfully implemented due to the clear and coordinated work of all participants. The joint efforts of the "RG Brands" team, JSC "Bank CenterCredit", JSC "Development Bank of Kazakhstan", and JSC "Nurbank" provided access to a new financing tool now available to the entire business community in Kazakhstan. The syndicate offers additional opportunities for business development and the national economy as a whole. The implementation of this project will allow "RG Brands" to continue its investment program to expand production capacities in Kazakhstan and increase the company's export potential," noted RG Brands CFO Timur Zhanguzhanov.
Let's recall that in December 2023, an agreement of intent for joint lending was signed between the Development Bank, JSC "Nurbank" and JSC "Bank CenterCredit". The allocated funds will be used by the borrower to acquire new high-tech production lines, expand the production workshop, and increase product exports to the Republic of Uzbekistan market.
The total financing volume amounts to 26.5 billion tenge, of which 12.5 billion is intended for expanding production capacities and another 14 billion for pre-export financing. As a result of the expansion of production capacities, the volume of juice-containing, tea, as well as carbonated and non-carbonated beverages will almost double as they are gradually put into operation. In turn, this will not only increase domestic production and export of beverages but also support the creation of new jobs at the enterprise for Kazakh specialists.
Sources: https://kapital.kz/finance/125697/podpisan-pervyy-v-kazakhstane-dogovor-o-sindikate.html
https://www.inform.kz/ru/podpisan-perviy-v-kazahstane-dogovor-o-sindikate-a1e05e