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Kazakhstan Development Bank eyes supporting several modernization projects in 2021

Business Materials 27 January 2021 00:00
Kazakhstan Development Bank eyes supporting several modernization projects in 2021

BAKU, Azerbaijan, Jan.26

By Nargiz Sadikhova - Trend:

Development Bank of Kazakhstan JSC (DBK) will consider supporting potential projects worth up to 820 billion tenge ($1.9 billion) in 2021, Trend reports citing the DBK.

The loans to be allocated within the support to these projects are 460.8 billion tenge ($1.09 billion). Moreover, DBK will commission and modernize 10 production facilities in 2021.

The slowdown in the growth of the world economy and the global decline in production volumes had an insignificant effect on DBK's lending activities.

DBK finished 2020 with a positive financial result. According to unaudited data, the consolidated net profit amounted to 25.4 billion tenge ($60.4 million). The volume of equity capital amounted to 516 billion tenge ($1,2 billion), showing increase of 21 percent compared to 2019.

The bank supported modernization and commissioning of nine large enterprises in 2020, which have a significant social, economic and multiplier effect on the development of the regions of sale. About 1,942 new jobs were created throughout the country.

More than 17 billion tenge ($40.4 billion) were paid to the state budget. Among the launched and modernized enterprises are not only industrial giants but also "green" projects. For example, the construction of the second 50 MW start-up complex of the Astana EXPO-2017 wind farm in the Akmola region, the Kaskelen 50 MW solar power plant in the Almaty region, a tourist complex "Aktau Resort Hotel" in the Mangistau region, Hyundai cars production in Almaty and others.

The volume of attracted funding in 2020 amounted to 542 billion tenge ($1.2 billion), with 74.9 percent of which are market funds. For each tenge, the bank attracted 2.98 tenge of market loaning from state funds.

DBK uses various funding instruments in the domestic and international capital markets: for example, 35 percent of the attracted market funds were interbank loans, 15 percent were Eurobonds denominated in tenge, and the remaining 40 percent were local bonds, 10 percent were deposits from other financial institutions.

The share of loans in tenge in the structure of the loan portfolio increased from 20.5 percent, or 78 billion tenge ($185.7 million), in 2013 to 54.5 percent, or 1.07 trillion tenge ($2.5 billion), according to the preliminary results of 2020.

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