Nurbank places special emphasis on supporting government programs aimed at addressing social issues. An example of such responsible cooperation is the assistance to the National Program for the construction or reconstruction of student dormitories through investor funds (which can be attracted to second-tier banks and subsidized by the Damu Fund), which will be gradually compensated from the national budget through the placement of a government order for student accommodation.
Business and government cooperation
We have an excellent story of a successful business project from the city of Taraz, demonstrating the effectiveness of the aforementioned government program. Nurghali Amangeldiyev, an investor, personally faced the situation where his son was unable to secure a place in a dormitory. Ultimately, he saw the scale of the deficit and decided to make a positive change at least in his region. Spoiler alert - he succeeded.
The deficit of dormitory places is a real and pressing issue for every region of Kazakhstan. According to JSC "Financial Center" (shareholders - the Ministry of Science and Higher Education of the Republic of Kazakhstan and the Ministry of Education of the Republic of Kazakhstan), under whose supervision the mentioned program is being implemented, in 2023, more than 265,000 graduates appeared in Kazakhstan. At the same time, in 2023, the deficit across the country is almost 70,000 places for student accommodation. Analysts at JSC "Financial Center" are confident that if measures are not taken, the situation will continue to deteriorate. By 2030, the number of school graduates may reach about 300,000 people, and by 2035 this number will grow to 400,000. The authors of the analysis associate such a sharp increase in the number of graduates with the "baby boom" of the 2000s. The most significant deficit is in the two largest cities - Astana (15,800 places in 2023) and Almaty (33,500 places in 2023).
What does the state offer to investors? They invest their funds into the construction or reconstruction of a dormitory. According to the investment agreement, the business representative receives a government order for student accommodation.
If necessary, business representatives can subsidize the loan rate for the construction or reconstruction of the facility through JSC Enterprise Development Fund "Damu". This is what happened with Nurbank's client. Nurghali Amangeldiyev, who had previous positive experience working with Nurbank on financing the construction of a multifunctional complex, approached the bank for financial support for the construction of a dormitory. Specialists at Nurbank's Taraz branch saw substantial societal benefit in this project and decided to provide financial support. As already mentioned, the loan rate is subsidized within the support framework of JSC Enterprise Development Fund "Damu".
— How did the idea come to you to start working in the field of student dormitory construction?
— A life situation. My son graduated from school in 2022, and when enrolling in university, there was no place for him in a dormitory. Then I started to investigate the situation and concluded that the lack of student accommodation is a national-scale problem. From that moment on, I began planning the construction of a student dormitory. Later, I learned about a government program that would allow me to act as an investor and be eligible for cost compensation from the government.
Eventually, I approached Nurbank for funding to purchase land and construct a student dormitory. Nurbank approved the loan. In addition, we took advantage of the opportunity to subsidize the loan rate through JSC Enterprise Development Fund "Damu". I am proud of my team's results - we secured funding in June–July 2023, and on November 16, we already opened the doors for students.