Project description
and objectives:
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The proposed project is a two stage transaction. Initially the EBRD intends to
make a pre-privatisation equity investment in the Accumulation Pension Fund
GNPF (the “Company”), the largest pension fund management company in
Kazakhstan (measured by number of individual accounts). At this stage the EBRD
expects to subscribe to a capital increase in order to acquire an initial
9.99% stake. Subsequently the EBRD intends to purchase a further 10% of the
equity of the Company at privatisation which was originally planned for 2006,
but is now envisioned by end 2007-beginning 2008.
After subscription to the initial 9.99% stake, the Bank will participate
pro-rata in a capital, necessitated by new prudential capital adequacy
requirements.
The project has two main objectives. Firstly, the EBRD's investment will
facilitate the transfer of ownership of the Company from state to private
hands. In conjunction with the EBRD’s initial investment the Government of
Kazakhstan will commit to privatise the Company during 2006.
Secondly, the project will help to prepare the Company for privatisation. The
EBRD will support the Government of Kazakhstan in attracting a strategic
investor and the Company in reviewing and upgrading key business and control
functions as well as its corporate governance. This process will be aided by
technical cooperation funds.
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Transition impact:
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The project will enable the privatisation process of the Company to commence.
The initial share subscription by the EBRD will further promote private
ownership and confidence in Kazakhstan’s financial system. In addition, the
commitment of the Kazakh Government to continue the privatisation process
should ensure that a key ‘private’ pension fund management company is
ultimately controlled by a strategic investor with detailed pension fund
management experience.
The project will also have an important impact on the Company itself, by
continuing the process of improving the Company's business and operations.
This will include setting standards for corporate governance as well as
commercial improvements and important upgrades to systems and risk management.
Improvements will initially be promoted via an institution building programme
to be put in place as part of a technical assistance package (see below) while
the entry of a strategic investor is expected to ensure continued longer-term
improvements.
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The client:
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Accumulation Pension Fund GNPF, a pension fund and asset management company
owned by the National Bank of the Republic of Kazakhstan (64%) and the
Government of the Republic of Kazakhstan (36%).
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EBRD finance:
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Dependent on pricing agreed with a strategic investor at privatisation.
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Total project cost:
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Dependent on pricing agreed with a strategic investor at privatisation.
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Environmental impact:
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Screened FI.
Kazakhstan State Accumulation Pension Fund GNPF will be required to adopt and
implement EBRD's Environmental Guidelines for Passive Investments including
the Environmental Exclusion and Referral List for all its operations and
submission of an annual environmental report to the Bank as part of the
monitoring process.
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Technical
cooperation:
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EUR 350,000 TC funds have been provided by the Canadian International
Development Agency (CIDA) to support the Company management in formulating and
implementing an institutional building programme to promote privatisation and
to better safeguard pension assets. The technical cooperation programme has
the following three key components:
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Improvement of corporate governance and organisational structures;
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Improvement of operational systems and management efficiency, including asset
management, risk management, MIS, IT, data management and accounting;
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Improvement in strategic management, marketing and business development.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Algazy Sekenov, Director General
Accumulation Pension Fund GNPF
82,
Auezov Str
Almaty 480008
Kazakhstan
Tel: +7 (3272) 503 837
Email: gnpf@gnpf.kz
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EBRD contact:
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Dariga Sambayeva, Operation Leader: sambayed@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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