Samruk-Energy transformation loan

Location:

Kazakhstan

Project number:

48308

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Target board date:

02 Nov 2016

Status:

Repaying

PSD disclosed:

17 Mar 2016

Translated version of this PSD: Russian

Project Description

A multicurrency loan of the amount of up to EUR 150 million equivalent to JSC Samruk-Energy, a state owned power utility, to support the company in the privatisation process as part of Samruk-Kazyna Transformation and Privatization strategy. The loan proceeds will be used towards balance sheet restructuring.

Project Objectives

The proposed operation will allow the Bank to support the existing client on its path to privatization.

The Bank is expected to contribute to the company's transformation program ahead of the asset spinoff and public listing through consultation, particularly in the area of corporate governance.

Overall, the operation should have a strong demonstration effect of successful restructuring through privatization and transformation.

Transition Impact

The ultimate goal of the proposed operation is to help Samruk-Energy to successfully sell part of its assets to private investors, reduce leverage, modify business processes in the remaining businesses and become a transparent and efficient power company, an attractive investment for prospective IPO investors.

The Bank's role would be to facilitate this transformation process at each step through knowledge and expertise sharing providing additional comfort to potential investors.

Client Information

SAMRUK ENERGY JSC

Samruk-Energy is an existing client of the Bank since 2010. The Company is 100% owned by JSC Sovereign Wealth Fund Samruk-Kazyna. Samruk-Energy is a vertically integrated power holding with a total installed capacity of 8GW, 38% of the total installed capacity in Kazakhstan.

EBRD Finance Summary

KZT 60,000,000,000.00

Total Project Cost

KZT 184,000,000,000.00

Environmental and Social Summary

Category B. In accordance with the Bank's Environmental and Social Policy, provision of corporate financing to a multi site operation requires a Environmental and Social Due Diligence (ESDD) to assess the company's current and future operations as well as institutional capacity to implement the Bank's Performance Requirements. An independent consultant will be retained to undertake the ESDD. Specific attention will be placed on current environmental performance and need for upgraded to attain National and EU best standards. Based on the ESDD an Environmental and Social Action Plan (ESAP) will be developed and agreed with the company and included in the legal documentation to comply with the Bank's Environmental and Social Policy and relevant Performance Requirements.

Non-technical summary: English | Russian

Technical Cooperation

To be explored.

Company Contact Information

Aidar Nurgaliyev
a.nurgaliyev@samruk-energy.kz
+77172553078
www.samruk-energy.kz
The Republic of Kazakhstan, 010000, Astana, Kabanbay batyr, 15A

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