National managing holding KazAgro (Kazakhstan) announces participation in funding projects in Karagandy region in 2013

/KASE, March 27, 14/ – National managing holding "KazAgro" (Astana), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following information statement of March 28, 2014: quote The amount of financing of agro-industrial complex of the Karaganda region the Kazagro National holding companies in 2013 made 7,4 billion tenge. The vice- chairman of Board of the National managing director of Kazagro holding Kayrat Aytuganov told about it at meeting in Karaganda on which questions of subsidizing of spring and field works, realization of the accepted state programs on development of agro-industrial complex and an order of their financing were discussed. For today the investment portfolio of "Kazagro" as a whole on the republic includes 373 projects worth 254,8 billion tenges, including across the Karaganda region 18 investment projects in the total cost of 17,2 billion tenge, quantity of created workplaces – 903 for operation. For today it is put into operation of 14 projects by total cost of 5,0 billion tenge. 7 demands worth 5,4 billion tenges are under consideration. According to Kayrat Aytuganov within support of subjects of small and medium business in the Karaganda region the group of companies of Kazagro National holding financed 9 Credit associations (145 participants) for the sum of 822,6 million tenges. 218 units agricultural – special equipment and the equipment are bought: 147 units of agricultural machinery, 69 units of special equipment. Within development of farms "Sybaga" when financing holding 5 090 heads of a uterine livestock, 307 heads of breeding bulls are acquired. According to microcredit programs through JSC Fund of Financial Support of Agriculture 438 microcredits for the sum of 941,1 billion tenges (except for the Sybaga program) are given out. It is created new 15 workplaces, it is provided with employment of 579 people. Within preparation for the forthcoming spring and field works as the representative of "Kazagro" noted, the National holding will finance the affiliated organizations (Agrarian Credit Corporation, Prodkorporation, Fund of financial support of agriculture) and other financial institutions which aren't the affiliated organizations of the borrower on the following conditions: - by providing in the form of the bank guarantee on a remuneration rate no more than 5 (five) annual interest rates; - on a remuneration rate no more than 8 (eight) annual interest rates, in case of granting in providing liquid mortgage property; - at implementation forward purchase of wheat and barley by means of spring and summer financing is provided to the final borrower with a condition of payment of the commission by it of 5 (five) percent from the financing sum. Forward purchase is made under a guarantee of banks of the second level or under a guarantee of the social and enterprise corporations which don't have expired obligations to the affiliated organization the borrower and provided area Akim's guarantee about allocation of money from the local budget of social and enterprise corporation in 2015 in case of a non-return the final borrower and/or social and enterprise corporation of the means received in 2014; - when financing credit associations and the microfinancial organizations for a remuneration rate no more than 5 (five) annual interest rates, thus credit associations and the microfinancial organizations grant loans to final borrowers on a rate no more than 9 (nine) annual interest rates; As Kayrat Aytuganov told, since 2014 for the first time the holding will accumulate banks of the second level for the subsequent financing of agricultural producers, thus the rate of remuneration will make no more than 9% per annum. Besides, the holding in 2014 will realize the following programs of financing of agrarian and industrial complex: - Financing of investment projects (operator Kazagrofinance) – an interest rate – 6% per annum, with financing term till December 31, 2023. We expect increase in investment activity of borrowers in connection with introduction in action of norm on investment subsidies and subsidizing of a rate of remuneration on the credit. - Financing on the investment purposes, replenishment of current assets (KT, SPK, NSHB, the processing enterprises) (operators of KAF, AKK) - an interest rate of KAF – 12,8% per annum at AKK – from 5,2% to 14% per annum, financing terms till 10 years; - The program of development of an export potential of KRS meat (operators of KAF, AKK) - an interest rate to 6% per annum, financing term till 9,5 years; - Leasing agricultural and the special equipment, the processing equipment (the operator of KAF) – an interest rate of 5,8% (the subsidized interest rate at the expense of means of RB within the Agrobusiness — 2020 program) annual, for financings till 10 years; - Microcredit (including according to the employment Program – 2020) (the operator of FFPSH) - an interest rate – from 6% per annum, till 4 years of financing; - MKO crediting in the village (the operator of FFPSH) – 14,5% per annum (for the final borrower), for financings till 5 years. As a whole the cumulative credit portfolio of Holding for last year made 348 billion tenge or 48% of the total amount of crediting of agrarian and industrial complex. It is comparable to volumes of crediting of agrarian sector of economy all banks of the second level. Past year by Holding on support of agrarian and industrial complex of the republic it is directed to 193,5 billion tenge, including on crediting – 171,2 billion tenge. It is 26,4% more than level of 2012 (135,4 billion tenge). Thus the share of the budgetary expenses of the republican budget in structure of financing of Holding made 9%, the others - own and attracted. In 2013 on financing of small and medium business it was directed 145 billion tenge it is 10% more than level of 2012 (135,4 billion tenge). Growth of volumes is provided, generally at the expense of increase twice quantities of the given- out credits to subjects of MSB. In the market of leasing services of agricultural machinery a share of the companies in "Kazagro" structure - "Kazagrofinance" made 65%, Fund of financial support in rural microcredit - 93%. Press-service of "Holding "KazAgro" Rinat Tasbulatov +7 701 460 91 82, R.Tasbulatov@kazagro.kz tel. (7172) 70-56-39, www.kazagro.kz unquote [2014-03-28]