Accumulation Pension Fund GNPF - Pre-privatisation

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 35060

Status Complete

Location

Kazakhstan

Business Sector

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 35060

Status Complete

Location

Kazakhstan

Business Sector

Notice Type

Private

Environmental Category

Approval Date

15 Nov 2005

Disclosure date

12 Oct 2005

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Transition Impact

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.

The Client

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%).

EBRD Finance

Dependent on pricing agreed with a strategic investor at privatisation.

Project Cost

Dependent on pricing agreed with a strategic investor at privatisation.

Environmental Impact

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.

Technical Cooperation

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:

Improvement of corporate governance and organisational structures;
Improvement of operational systems and management efficiency, including asset management, risk management, MIS, IT, data management and accounting;
Improvement in strategic management, marketing and business development.

Company Contact

Algazy Sekenov, Director General
Accumulation Pension Fund GNPF
82, Auezov Str
Almaty 480008
Kazakhstan

Tel: +7 (3272) 503 837

Email: gnpf@gnpf.kz

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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