For the first time in Kazakhstan will be established the Investment Fund to support enterprises of agro-industrial complex
In Kazakhstan with the participation of National Holding "Baiterek" and Holding Group "Almex" will be created a private equity fund -ALMEX-Baiterek Fund to support domestic enterprises of agricultural and food industries. Representatives of the companies made this statement today during a press conference at NCE RK.
The equity of the Fund will be 18.6 billion tenge. Investors on a parity basis are: subsidiaries of the National Holding "Baiterek", JSC "Kazyna Capital Management" and LLP "Almex Project", part of the group of the companies "ALMEX”. As it was stated during the press conference by Deputy Chairman of NCE RK "Atameken" Nurzhan Altaev, the National Chamber of entrepreneurs will participate in the project. NCE will form an investment committee, which will look at the economic feasibility of all projects. In addition, NCE intends to join to this process its regional branches.
"Why did we now come to the idea of creation of such a fund? As you know, the Head of the Presidium of NCE RK "Atameken" Timur Kulibayev just recently traveled to all regions of Kazakhstan, where he held a meeting with businessmen. The main problem, which is a limiting factor for the development of SMEs in the regions, is the lack of long financial instruments. And Timur Kulibayev requested NCE to create some tools that would support projects of agribusiness and food industry. Niche projects could become an engine of economic development of Kazakhstani small and medium businesses", - said N. Altaev.
As it turned out, the private equity fund is very popular. Second-tier banks are engaged in provision of financial support to SMEs at the internal market. They lend money to businesses under certain interests and do not give the necessary amount for the long term. Long-term projects will be supported through investment fund, involving equity participation.
"The average investment period of 5 years is assumed. Overall funding will be in the medium term from 5 to 7 years. On a parity basis, we finance each of our contributions. 50% will issue JSC "National Holding" Baiterek "and 50% the group of companies" ALMEX" - said during the press conference the Chairman of the Board of JSC" National Holding "Baiterek" Kuandik Bishimbayev.
The Chairman of the Board of JSC "Holding Group" Almex" Mazhit Yessenbayev talked about economic benefits for all participants in the new project during the press conference with journalists.
"We will enter with the capital to those companies that wish it. We go in there as partners. Only to support, to share our management experience. Joint management will be spelled out in those treaties that will be signed for receipt of money from the Fund. The state allocates sufficient funds. But the question is how are they used, their effectiveness and efficiency. This is what we want to focus on. That’s what we will look at when considering projects submitted to our Fund. I hope that the Fund will show how to use efficiently and transparently the funds to produce the desired result. This is a good chance for farmers and we are confident it will work", - said M. Yessenbayev.
After completion of the transaction with the investment fund, an entrepreneur may redeem the stake, by returning to the fund the investment in business. In a world such financial assistance, as it was stated at the press conference is the most convenient and easiest way for SMEs.
Please, join our Telegram channel to stay up to date on the latest news.
Leave comment:
Comments: