Kazexportastyk

Location:

Kazakhstan

Project number:

40876

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

03 Nov 2009

Status:

Completed

PSD disclosed:

15 Oct 2009

Project Description

The EBRD is considering providing a $35 million revolving loan (the “Loan”) to Kazexportastyk, an integrated agro-industrial holding in Kazakhstan, to finance the working capital it requires to maintain and expand its programme of modernisation across almost 1,000,000 hectares of farmland in northern Kazakhstan.

Transition Impact

The principal areas of transition impact stem from supporting a company whose operations cover almost 1,000,000 ha of agricultural land. Specifically, the Bank’s financing will:

  • Enable Kazexportastyk to maintain and expand its ambitious programme of modernisation, which includes the introduction of no-till and advanced crop rotation practices. This programme will result in improved crop yields, which are vital to securing long-term competitiveness for the company and region alike. At present, Kazakh wheat yields stand at 1.1 t/ha, approximately half the average value for Ukraine and Russia of 1.9 – 2.2 t/ha. Since Kazexportastyk operates with “client farms” rather than solely on its own land, it has the possibility to transfer skills and knowledge of modern farming techniques within the Kazakh primary agriculture sector.
     
  • Broaden the use of modern farming machinery and equipment via the leasing aspect of Kazexportastyk’s business – this again will lead to increased yields and competitiveness in the sector.
     
  • Demonstrate the value of implementing international, transparent legal, organisational and accounting practices when seeking finance.

 

The Client

JSC Holding Kazexportastyk, (the “Company” or “KEA”) is a large agro-industrial holding and the 3rd largest grain trader in Kazakhstan. It is wholly owned by Mr. Ruslan Moldabekov and has operations across four main categories:

(i) production, purchase and sale of wheat, rapeseed and other agricultural commodities

(ii) purchase of machinery and equipment and subsequent leasing of this equipmentc mainly to client farms

(iii) grain storage & shipping, and

(iv) sale of equipment, spare parts and agrochemicals

EBRD Finance

$35 million annually revolving working capital facility.

Project Cost

$100 million.

Environmental Impact

This project was categorised B under the EBRD’s Environmental and Social Policy 2008.

Due diligence, which is ongoing, will focus on the Company’s capacity and systems to manage environment, health, safety and labour issues in its operations in Kazakhstan. Due diligence will confirm whether the Company can operate to EU environmental standards; and that the Company has systems in place to manage their environmental impacts, OHS risks and human resources. Under the proposed project the Company will be required to comply with the Bank’s Environmental and Social Policy 2008 Performance Requirements applicable to the project (specifically PRs 1-8 and 10). The Bank will monitor the Companies’ environmental and social performance for the lifetime of the loan through annual environmental and social reporting. The Companies will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.

This section of the PSD will be updated upon completion of due diligence.

Technical Cooperation

None.

Company Contact

Saule Utyubayeva
E-mail: keaholding@keaholding.kz
Fax: +7 7172 32 26 57
Tel:  +7 7172 21 49 01 (direct) / +7 7172 32 04 32 (reception)
Website: www.kazexportastyk.kz.

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

Share this page: