BCC participated in the first syndicated financing
JSC Bank CenterCredit, in partnership with JSC Development Bank of Kazakhstan and JSC Nurbank signed an agreement to provide the first syndicated financing in Kazakhstan. The funds will be allocated to the major beverage producer "RG Brands Kazakhstan" LLP to expand production capacity and increase product exports to the Uzbekistan market. It is worth noting that this is the first syndicated loan agreement of the Development Bank of Kazakhstan in partnership with second-tier Kazakhstani banks.
JSC Bank CenterCredit became the first bank in Kazakhstan to issue a tranche within the syndicate and assumed the role of the Agent Bank, representing the interests of all syndicate lenders and providing credit administration services within syndicated loans.
"Syndicated loans allow us to achieve two goals at once. On the one hand, we expand the base of long-term financing for our borrowers from the processing industry on favorable terms, and on the other hand, we involve more private financial institutions in financing large projects in the real sector of the economy," commented Marat Yelibayev, Chairman of the Board of the Development Bank of Kazakhstan.
"One of the bank's priority areas is to support the real sector of the economy. Therefore, we decided to participate in this initiative. BCC team has developed a product for the first time in Kazakhstan, allowing to provide administration services within syndicated financing. We are improving, expanding our capabilities, and ready to provide the Agent Bank services in such deals," noted Nurlan Shegebayev, Vice President of JSC Bank CenterCredit.
"Nurbank highly appreciates the positive effect and significance of the syndicated loan mechanism for business representatives, industry, and, consequently, for the entire state economy. Such financial collaboration not only allows increasing the volumes of financing for the real sector of the economy but also offers clients the most comfortable conditions. Moreover, we highly value the opportunity for joint cooperation with KDB and Bank CenterCredit in implementing syndicated financing programs," shared Gulnara Musatayeva, Chairperson of the Board of Nurbank.
The successful implementation of the syndicated loan owes much to the clear and coordinated efforts of all involved parties. The joint efforts of the teams at “RG Brands”, JSC Bank CenterCredit, JSC “Development Bank of Kazakhstan” and JSC Nurbank have opened access to a new financing tool now available to the entire business community of Kazakhstan. The syndicate provides additional opportunities for business growth and the national economy as a whole. The implementation of this project will enable “RG Brands” to continue its investment program in expanding production capacity in Kazakhstan and increasing the Company's export potential," noted Timur Zhanguzhanov, Financial Director of RG Brands.
Please be reminded that in December 2023, an agreement of intent for joint financing was signed between the Development Bank, Nurbank, and Bank CenterCredit. The allocated funds will be utilized by the borrower to acquire new high-tech production lines, expand production facilities, and increase the export of products to the market of the Republic of Uzbekistan.
The total financing volume stands at 26.5 billion tenge, with 12.5 billion designated for expanding production capacities, and another 14 billion for pre-export financing. As a result of the expansion of production capacities, the volume of juice, tea, carbonated, and non-carbonated beverages will almost double incrementally as they are put into operation. The expansion will not only increase domestic production and beverage exports but also foster the creation of new jobs for Kazakhstani specialists within the enterprise.