BAKU, Azerbaijan, Dec. 25
Trend:
Current projects portfolio of Development Bank of Kazakhstan (DBK) is 53.3 percent formed in Kazakh tenge and 46.7 percent in foreign currency, Abay Sarkulov, Chairman of the Board of the Bank said, Trend reports citing the DBK.
Sarkulov said that since 2013, the volume of lending in tenge has grown by 33 percent, and such changes had a positive impact on the financial stability of our borrowers.
“As for the lending currency, we are using a natural hedge. If the borrower has foreign exchange earnings, then we will issue a loan in foreign currency, however, if there is no foreign exchange earnings, then we provide a loan in tenge. This approach provides our borrowers with good financial stability and allows us to mitigate foreign exchange risk,” he said.
Talking plans for 2021, Sarkulov said that DBK offers business favorable conditions for the implementation of projects at various stages - from the investment phase to the export of finished products.
“To ensure the best conditions for the client, DBK actively attracts borrowed funds both in the domestic and international capital markets, so for each tenge from public funds, Development Bank attracted 1.96 tenge of market borrowing. Just before the pandemic, we carried out the third issue of tenge bonds in the amount of 62.5 billion tenge ($148.8 million) at a favorable rate. Next year we are planning a road show for foreign investors to get them interested in investing in Kazakhstan,” Sarkulov said.
"In early December of this year, the Bank signed a loan agreement with the Eurasian Development Bank, according to which we were provided with a credit line in the amount of 5.7 billion Russian rubles for a period of 7 years," he said.
“We also signed a four-way memorandum of cooperation with VEB.RF, Eurasian Development Bank and Development Bank of the Republic of Belarus. We plan to develop the implementation of transactions in Russian rubles and finance our borrowers in this currency. Thus, we are doing our best to diversify our borrowing portfolio and look at other currencies. Perhaps next year we will again repeat the work on the issue of eurobonds in tenge on foreign markets,” he said.
---
Follow the author on Twitter: @nargiz_sadikh