Concessional Financing Program involving second-tier banks for small and medium enterprises out of the funds of “Kazyna Capital Management” JSC through the “Baiterek Venture Fund” JSC

General conditions of the Program:

Program goal Ensuring the sustainable and balanced growth of entrepreneurship through the development of direct investment in capital of small and medium enterprises
  • Development of non-resource economic sectors through direct investment in the small and medium enterprises, which carry out activities in priority sectors of economy and have growth potential and stable financial condition.
  • Support of non-resource exports by investing in projects with the potential of processed product export to regional and international markets.
Developer “Kazyna Capital Management” JSC
Operator/Fund “Baiterek Venture Fund” JSC (hereinafter the “Fund”)
Investment geography Companies in the territory of the Republic of Kazakhstan (hereinafter the “Companies”)
Investment amount Up to 1 000 000 000 (one billion) tenge and including
Financing currency Tenge
Participation interest of the Fund Up to 49% and including
Final rate of return No more than 8% per annum ex capitalization
Investment term
  1. From 1 to 10 years – for investment projects.
  2. From 1 to 5 years – for export operations and working capital financing
Appropriate use of Fund investments
  • Investment project implementation.
  • Export operation performance.
  • Working capital financing (current activity financing).
  • Financial liability discharge towards financial institutions (but no more than 30% of the amount of investment in one Company)
Investment instruments Acquisition of participating interest shares in the Companies authorized capital with the option executor’s liability under an options agreement
Investment recovery security instruments Options agreement conclusion and the second-tier bank guarantee as security for the liabilities of option executor under the options agreement
Investment restrictions

Investments cannot be allocated to:

  • Financing of any companies with the negative credit history specified by internal regulatory documents of second-tier bank.
  • Financing of any companies with overdue debt on taxes and other obligatory payments to budget.
  • Financing of any companies, for which the Fund’s investments will be allocated to payments to the Company members for personal ownership and use (ban on cash-out), excluding the amount for acquisition of the share specified in the Share Purchase Agreement.

Investments cannot be allocated to:

  • Projects, the goal of which is the extraction and sale of raw materials (mineral resources) without further processing;
  • Projects for alcohol and tobacco product output;
  • Gambling business development projects with cash prizes (casinos, totalizators, etc.);
  • Projects related to the production of narcotic drugs, weapons, psychotropic substances and their precursors.

Investments can be allocated only to specific priority sectors of economy.

Requirements to Companies
  • Companies are residents of the Republic of Kazakhstan.
  • Companies are the small and medium-sized business entities in the organizational and legal form of limited liability partnership in accordance with the legislation of the Republic of Kazakhstan.
  • Companies cannot be enterprises, the founders of which (including members, shareholders) are the state-owned enterprises / institutions, national managing holdings, national companies and organizations, fifty or more percent of shares (equity interests) of which are directly or indirectly owned by the state, national managing holding, national holding, national company, persons affiliated with “Baiterek National Managing Holding” JSC, as well as the entrepreneurs, the ownership form of which is registered as a private institution, and the non-profit organizations.
For details refer the Partner’s website: Concessional Financing Program BVF