62360 COUNTRY FACT SHEET IFC, a member of the World Bank Group IFC in Kazakhstan IFC is the largest global development institution focused on the private sector IFC (International Finance Corporation) IFC is a member of the World Bank Group, owned by 183 countries. IFC was formed in 1956 to support private sector development in developing countries. IFC is the largest multilateral source of debt and equity financing for private enterprises in the developing world and provides a full range of innovative financial products and advisory services tailored to entrepreneurs, companies and governments. IFC’s Comparative Advantage IFC Advisory and Investment Services IFC offers a unique combination of innovative IFC offers a variety of investment products and investments, advisory expertise, and risk-mitigation services that enable our partners to capitalize on capabilities. emerging opportunities, and we work closely with each client, tailoring our investment strategy to take We bring: into account the specifics of a country and sector. Association with the World Bank Group. IFC also provides advisory services to companies on Special status as a public institution focused on strengthening management and production the private sector, providing financing and advice practices, financial planning, corporate governance, that goes beyond what the market can provide on and environmental and social practices. IFC also its own. advises governments on business policy and A global presence, with offices in more than 80 legislative issues. countries and activities in many others. Deep industry and market knowledge built over more than 50 years. IFC Strategy in Kazakhstan IFC’s strategy in Kazakhstan supports private sector led growth, particularly in the non-extractive sectors and frontier regions. This includes ongoing support to the financial sector and when possible, investments to promote SME development as well as investments in manufacturing, infrastructure, and the service sector. IFC will focus on: (a) further stabilization, diversification and extension of the maturity of the funding base in the banking sector and (b) establishment of the best international banking and corporate governance and regulatory environment. IFC is increasing its operations in Central Asia in order to support competitive private businesses, improve further access to finance and contribute to the sustainable and equitable development of the region. As IFC’s largest client in Central Asia, Kazakhstan has received commitments of over $1 billion of IFC’s own funds and over $400 million in syndications through December 31, 2010. IFC's investments in Kazakhstan have been mainly in the financial and general manufacturing and services sectors. ADVISORY SERVICES There are several IFC advisory projects currently in operation in Kazakhstan: Central Asia Corporate Governance Project 2006 – present (ifc.org/cacgp) IFC is helping local joint stock companies and banks strengthen their corporate governance practices with a view to improving their operations and increasing ability to attract investment and financing. Azerbaijan and Central Asia Microfinance Transformation Support Project 2008 – present (ifc.org/acamfi) IFC is providing advisory services on a selective basis to microfinance institutions in Azerbaijan and Central Asia through the Microfinance Transformation Support Project to support their transformation processes. IFC IN KAZAKHSTAN INVESTMENT PRODUCTS IFC Portfolio in Kazakhstan by Sector as of December 31, 2010 Loans and Intermediary Services. IFC offers its clients a variety of lending instruments. Loans are issued at market rates, both in hard currency and in an increasing number of emerging market currencies including the Tenge. Equity. IFC buys and holds shares in companies, other project entities, financial institutions, and portfolio or private equity funds. Syndicated Loans. Through its syndicated loan program, IFC offers commercial banks and other financial institutions an opportunity to lend to projects and companies they might not otherwise consider. Structured Finance. Products include partial credit guarantees, participation in securitizations, and risk sharing facilities. Trade Finance. IFC is helping emerging markets increase their share of global trade through a worldwide network of bank partnerships that finance trade under risk coverage provided by IFC. RECENT IFC INVESTMENTS IN KAZAKHSTAN FINANCIAL PROJECT IFC IFC YEAR Financing Financing ($ million) ($ million) 2010 Ust Kamenogorsk 2.0 IFC’s financing helps UKPF expand production and improve standards for Poultry Farm Kazakhstan’s only domestic supplier of chilled poultry meat. The support from IFC and from KazAgroFinance, a government-sponsored agricultural leasing company, will enable a $30 million capital expenditure program. It includes expansion of annual production to 16,000 tons, modernization of operations, and improvements to bird nutrition and bio-security. 2009 ATFBank 60.0 IFC’s subordinated loan is helping to promote access to finance for small and medium enterprises in Kazakhstan. 2009 Bank CenterCredit 170.0 IFC invests in a 12.5 percent equity stake alongside local shareholders and the strategic investor Kookmin Bank of South Korea, and provides an $85 million subordinated loan. IFC’s financing is helping the Bank’s strategy to focus on small and medium enterprises. 2009 Eurasia RED 25.0 IFC’s loan helps build a high-quality retail center in Almaty. IFC’s investment helps establishing A’port Raimbek, a 100,000 square-meter shopping and entertainment center. 2009 Jambyl Cement LLP 65.0 IFC’s loan and equity investment supports an expansion of the cement activities of the Vicat Group, the third largest cement company in France. Financing package is for construction of a greenfield, state-of-the-art dry-process. 1.1 million tons per annum cement plant located in Mynaral, about 400 km north of Almaty. 2009 Bank CenterCredit 85.0 IFC’s loan and trade finance line for the 5-th largest bank in Kazakhstan. IFC’s financing is helping the Bank’s strategy to focus on small and medium enterprises. CONTACTS GOKHAN KONT ADVISORY SERVICES Financial Markets INVESTMENT SERVICES GKont@ifc.org CHOLPON KOKUMOVA ADALYAT ABDUMANAPOVA Microfinance Transformation Corporate Governance Project TOMASZ TELMA RACHEL FREEMAN Support Project AAbdumanapova@ifc.org Associate Director for Central Real Sector CKokumova@ifc.org Asia and Azerbaijan RFeeman@ifc.org TTelma@ifc.org ERIC PETER Infrastructure 050010 Almaty, Kazakhstan, EPeter@ifc.org th 41 A Kazybek Bi Str., 1- floor T: +7 727 2980 586 F: +7 727 2980 584 2010 ifc.org