Accumulation Pension Fund GNPF - Pre-privatisation



Project number:


Business sector:

Insurance, Pension, Mutual Funds

Notice type:


Environmental category:


Approval date:

15 Nov 2005



PSD disclosed:

12 Oct 2005

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

Tel: +7 (3272) 503 837



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

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Text of the PIP

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