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EDB to allocate funds for Kazakhstan-based production facility of Russian KAMAZ

Business Materials 17 February 2021 18:02
EDB to allocate funds for Kazakhstan-based production facility of Russian KAMAZ

BAKU, Azerbaijan, Feb. 17

By Nargiz Sadikhova - Trend:

Eurasian Development Bank (EDB) and Russian KAMAZ company signed the preliminary indicative conditions for financing the program for the development of the model range and modernization of production facilities in Kazakhstan, Trend reports citing EDB.

The signed document oversees the provision of a credit line by the EDB for 5 years in the amount of 12 billion rubles, including for the creation in the industrial zone in Kazakhstan’s Kostanay for the production of main gears for driving axles and a foundry. The plant will manufacture the axle housing, cylinder block and cylinder head for the new generation K5 trucks.

All manufactured products will be shipped to the main assembly plant of KAMAZ PJSC in Naberezhnye Chelny of Russia.

In November 2018, the EDB provided financing in the amount of more than 9.5 billion rubles to KAMAZ PJSC. When implementing this transaction, the EDB used equity and bond financing instruments, thereby allowing KAMAZ PJSC to form an optimal structure for raising funds.

"In Kazakhstan, KAMAZ PJSC is creating a plant, the products of which will be used at the main production facilities of the automotive giant in Russia. We have all the necessary expertise and experience both in Kazakhstan and Russia. Therefore, we are ready to support our partners at all stages of the project, including within the framework of technical assistance," Nikolay Podguzov, Chairman of the Management Board of the EDB said.

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