Project description
and objectives:
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The proposed project involves provision of a loan to Bank CenterCredit, the sixth largest Kazakh bank in terms of assets and a long standing EBRD client, for on-lending to private local companies for the leasing of modern equipment used in agricultural, industrial and mining sectors. This equipment is marketed and distributed by Borusan Makina (BM) and its subsidiaries, which also provide a range of after-sale services to their customers. BM is part of Borusan Holding, one of Turkey’s major industrial and service groups. There will be a risk sharing mechanism between the Bank and BM, whereby BM will guarantee 50% of the Loan. The project will facilitate and increase long-term and affordable financing available for replacement of old and outdated equipment in Kazakhstan.
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Transition impact:
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The majority of the equipment stock in Kazakhstan is Soviet made, old and outdated, which need to be replaced with modern technologies in order to help the country improve its competitiveness in key non-oil sectors such as agriculture and mining. This will also support the diversification of economy. For example modernisation of machinery in the agricultural and mining sectors will improve efficiency and quality of the production, contributing to enhancement of Kazakhstan’s competitiveness in the export markets. Also, the variety of services provided by BM to its customers will help the Sub-Borrowers develop their technical skills and competence. In addition the Project will have an impact on energy efficiency through the replacement of old equipment, which will decrease fuel consumption.
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The client:
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The borrower is Bank CenterCredit, a private local bank established in 1988. At present it is the 6th largest bank in Kazakhstan measured by total assets and 5th largest by customer deposit accounts, providing retail and corporate banking products and services.
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EBRD finance:
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USD 10 million senior loan in 2 equal tranches.
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Total project cost:
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USD 10 million.
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Environmental impact:
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Screened FI: Bank CenterCredit (BCC) will need to adhere to the EBRD's Environmental Procedures for Leasing and to the Environmental Exclusion and Referral List. BCC will need to require that Sub-borrowers comply with national standards for environment, health and safety and labour and confirm to the Bank on an annual basis that these requirements have been met. BCC is an existing client of the Bank and is familiar with the EBRD's Environmental Procedures for Financial Intermediaries and has submitted Annual Environmental Reports to the Bank. Representatives from BCC attended the EBRD's Environmental Risk Management Workshop in Almaty in July 2006. A monitoring visit was also carried out by PWC environmental consultants on behalf of the EBRD.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Adress: 98, Panfilov Street, 050000, Almaty/ Kazakhstan
Tel. +7 727 2-598 546
Fax. +7 727 2-597-365
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EBRD contact:
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Gulsema Cerezci, Operation Leader: cerezcig@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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