The provision of a convertible loan facility of US$ equivalent of KZT 5.5 billion to a parent company of Araltuz JSC (Araltuz), to be established under the jurisdiction of Astana International Financial Centre (AIFC).
The Bank's financing will be used towards Araltuz's investment programme aiming at introduction of new products and sales diversification to new markets.
ETI score: 68
Primary Quality: Integrated
The project will support expansion of the Company's exports to new markets as a result of implementation of the CAPEX programme, which will expand the Company's product range towards value-added products.
Secondary Quality: Well-governed
The Project will support the Company in improvement of its corporate governance via implementation of a Corporate Governance Action Plan ("CGAP"), which entails integration of the Company's broader environmental and social matters into its governance and decision-making processes.
TO BE DEFINED
Araltuz is a leading producer of table and technical salt in Central Asia
EBRD Finance Summary
Total Project Cost
Financing Structure. The Bank offers to structure the Project in the form of a convertible loan, a product which is not readily available from other banks in Kazakhstan. The Bank's financing is critical for the Project to materialise, so the Bank's participation is highly additional.
Standard-setting. The CGAP developed with the help of an external consultant engaged by the Bank was agreed with the client and all CG issues identified by the consultants were addressed in CGAP. Additionally, the Company will aim to enhance its board of directors and board committees with a mix of skills, qualifications, expertise and gender balance that allows the board to address key challenges, risks and opportunities, including ESG and climate-related risks and opportunities. The Company has committed to promote equal opportunities for women and men by addressing gender gaps as part of CGAP and increasing the number of women among the Company's board members.
Knowledge, innovation, and capacity building. EBRD provides support to the Company in developing relevant internal policies, which are required for proper implementation of CGAP by the Company.
Environmental and Social Summary
Categorised B (2019). The independent ESDD was conducted in 2021 and consisted of the review of the Company's policies and operational standards, including a site visit. The ESDD identified that a national EIA will be commissioned for the new plant construction once the Detailed Design is completed, and the process technology is identified. The Company will need to ensure that the selected process technology meets the requirements of the Best Available Technologies for the sector. Araltuz' current performance is compliant with Kazakhstan's national environmental and health and safety regulations although Araltuz will aim to further improve its EHS practices. The Company has certified Quality Management and Food Safety Management systems and will aim to establish environmental, health and safety management systems. The ESDD identified certain specific areas that Araltuz will aim to improve with due regard to environmental issues including certain infrastructure and facilities. The Company has a Community Liaison Officer and provides financial aid to local municipality; it will need to further streamline its stakeholder identification and engagement activities through the implementation of the Stakeholder Engagement Plan. The ESAP for identified risks and impacts has been agreed with the Company.
Technical Cooperation and Grant Financing
TC: The Company will benefit from TC support of up to € 150,000 for the implementation of the Corporate Governance Action Plan and Climate Governance Action Plan, drawing on funding secured from EBRD's Special Shareholder Fund ("SSF") and a dedicated CCG Facility. 20 per cent of costs to be covered by the Company.
Company Contact Information
+7 (727) 364-56-20
050026, Kazakhstan, Almaty, Zhumaliyev str. 112
PSD last updated
16 Jun 2023
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