/KASE, April 20, 2021/ – Industrial Development Fund (Nur-Sultan), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following communique dated April 20, 2021:

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As part of the Comprehensive Program for the Development of Bus Transportation for 2018-2020, Industrial Development Fund JSC in 2018 funded the leasing deal called "Renewal of public transport in Semey".

The carrier Semey Bus LLP received 170 buses to provide services for the transportation of passengers along socially significant routes.

During the implementation of the project, Industrial Development Fund JSC provided support to the carrier by approving a postponement of payment of lease payments, as well as a restructuring of the project was approved in connection with the Covid-19 pandemic and restrictions on passenger traffic.

Semey Bus LLP failed to fulfill the terms of restructuring and committed a violation of the assumed obligations:

1. from January 2020 on the part of the lessee, there was a debt (as of April 15th of this year: 451 calendar days of delay in the amount of KZT1.5 bn);

2. from September 2020, leased items and pledged items have not been insured;

3. the audited financial statements for 2019 were not provided;

4. revaluation of leased items and pledged items for 2020 was not provided.

Semey Bus LLP does not eliminate technical defects of buses detected during on-site monitoring. Today, out of 170 buses, only 113 go on the routes, 40 buses need current repair, 17 need repair, 10 of which are due to road accidents.

In order to minimize financial losses and prevent further deterioration of the technical condition of the bus fleet, on April 15, 2021, an economic default was announced on the leasing deal called "Renewal of public transport in Semey".

Currently, in accordance with the legislation, as part of the default procedure, measures are being taken to seize buses until the settlement of debt settlement issues and further operation of buses for the transportation of passengers in Semey.

Press service of Industrial Development Fund JSC.

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[2021-04-20]