Development Bank of Kazakhstan Reports on Performance in 2010
OREANDA-NEWS. January 27, 2011. Development Bank of Kazakhstan is a major national institution under auspices of the Sovereign Wealth Fund Samruk-Kazyna and one of the largest financial institutions in Kazakhstan (assets as of January 1, 2011 were estimated at USD6.5 bn). The Bank has the highest credit rankings across the industry, matching Kazakhstan's sovereign ratings, reported the press-centre of KASE.
By results of 2010, DBK has shown an increase in loans disbursed under the Government's Programme of Accelerated Industrial and Innovative Development of Kazakhstan for 2010-2014 (PAIID); its growing financial ratios helped to attract major foreign investments to manufacturing industries.
As of January 1, 2011, DBK's loan portfolio exceeded USD2.9 bn, increasing by USD968 m (48%) since the beginning of the year. The share of loans for investment projects is the largest (82%), which clearly speaks for the Bank as being a large investment institution.
DBK's priority is financing of large industrial and infrastructural projects, first of all, in sectors like metallurgy, chemicals, petrochemical industry, energy, transport, communications and tourism.
In 2010 the Bank approved financing of 6 new investment projects jointly totaling to USD1.35 bn with USD1.26 coming from the Bank, including a strategic project on reconstruction of Atyrau oil refinery, the third stage of the construction of Moinak hydro-electric power station, a project on increasing the capacity of Shardara hydro-electric power station, a project on construction of ice-breaking tow-boats, manufacturing of rail carriages in Ekibastuz etc.
In 2010 the DBK group (DBK and DBK-Leasing) implemented 18 projects amounting to USD1.4 bn with USD701.5 m financed by DBK, among them there were strategic investment projects supported by the government.
In 2011 the Bank intends to complete and continue financing of 18 projects with the total value of USD2.4 bn, as well as to open financing for 5 new projects. In 2011, 10 projects currently implemented with the Bank's support are expected to be commissioned, whose value will reach USD650 m.
As of January 1, 2011 the volume of financing carried out by the Bank reached USD5.2 bn, increasing by 34% since the beginning of the year. Throughout 2010, Kazakhstan raised USD1.150 bn of foreign investments (Export-Import Bank of China, JBIC, BNP Paribas, Bank of Tokyo Mitsubishi UFJ, Eurobonds) and KZT43 bn from inside the country.
The Bank plans to raise another USD1.5 bn via Eurobonds issue, tied and inter-bank loans, KZT-denominated bonds issue inside Kazakhstan.
Within the next five years the Bank's investment activities will be aimed at implementing PAIID projects by way of financing large investment projects on national scale. The Bank sets a goal - to provide not less than 10% of total investments into non-raw material industries and infrastructure across Kazakhstan during PAIID implementation. It also wants to increase its loan portfolio to USD7 bn by 2015 and to USD10 bn by 2020. Another important goal is to obtain a corporate governance rating from Standard & Poor's at a level not lower than GAMMA-6 by 2015, and not lower than GAMMA-7+ by 2020.