Project description
and objectives:
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The proposed project is an investment in the Kazakhstan Growth Fund (the Fund), a newly established private equity fund that will invest minority and majority equity stakes in private companies in Kazakhstan, Russia or other countries of Central Asia. The Fund will be managed by a new company to which staff of the Investment Fund of Kazakhstan (IFK) will transfer. The objective of the Fund is to enable the management team of IFK to develop a track record that will enable the new management company to be privatised and to raise a follow on fund with a majority of private capital.
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Transition impact:
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The proposed project will raise the professional skills of the management team of IFK and promote the development of the private equity sector in Kazakhstan by facilitating the privatisation of the management company and raising of a follow on fund with a majority of private investors. The Fund itself will promote the development and restructuring of medium sized private companies and show other companies the benefits that can arise from raising new capital form a private equity investors. Finally the EBRD's involvement will promote the highest standards of corporate governance and integrity in the Fund and the companies in which it invests.
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The client:
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The Fund will be established by a new management company to be established by Kazyna Capital Management, a state owned joint stock company established in 2006 as a holding company for state owned development institutions in Kazakhstan. The staff of the management company will transfer from Investment Fund of Kazakhstan, a wholly owned subsidiary of Kazyna established in 2003 to make minority equity investments in private companies in non extractive industries.
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EBRD finance:
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The EBRD's stake in the proposed fund will be a maximum of 50% minus one share. Kazyna Capital Management (KCM) will also invest up to 50% minus one share. KCM is a wholly owned subsidiary of Kazyna established in 2007 to make minority investments in private equity funds. The new management company will have two shares in the Fund. Third party investors may make additional investments up to one third of the capital of the enlarged fund.
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Total project cost:
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Up to USD equivalent of KZT 22.5 billion (EUR 118.5 million).
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Environmental impact:
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The Fund will be required to adopt and implement the EBRD's Environmental Procedures for Funds which includes compliance with the EBRD's Environmental Exclusion and Referral List and provision of an Annual Environmental Report. Investee companies will be required to comply, at a minimum, with national standards for environment, health, safety and labour.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Maxat Kabashev, CEO, Investment Fund of Kazakhstan. Email: Kabashev@ifk.kz
Investment Fund of Kazakhstan, 80, Zenkov Street, 050010, Almaty, Kazakhstan. Tel: +7 727 259 8111 Fax: +7 727 258 3799
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EBRD contact:
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Peter Stredder, Operation Leader: streddep@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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