VTB Group provided a loan in the amount of up to EUR 640,000,000 to the group of companies that are part of the AK Altynalmas JSC. Thus, the total credit line amounted to EUR 1,100,000,000.
Financing was provided to the Altynalmas Group to support business development: construction of new enterprises and expansion of asset base. The received funds will be allocated for the completion of the consolidation of the assets of the KAZAKHALTYN JSC with the AK Altynalmas JSC, for the implementation of the “Mizek” project with a capacity of 5 million tons of ore per year, for increasing and maintaining gold production at the level of more than 500,000 ounces per year starting from 2021, for optimization of the company's debt portfolio, as well as for the implementation of a series of programs for capital construction and expansion of production capacity and raw material base.
Aidar Kaliyev, Head of Operations in Central Asia, Senior Vice-President of VTB:
“VTB and Altynalmas Group of Companies have longstanding partnership relations, and we are glad to take part in the further development of its business. VTB works with a number of leading players in the mining industry, so we are confident that our expertise in this market sector will allow the Altynalmas Group to successfully continue the implementation of its strategic goals and investment program”.
Vladimir Dzhumanbayev, Chairperson of the Board of Directors of AK Altynalmas JSC:
"We are very pleased that our cooperation with VTB, which began last year, is developing rapidly, helping us to implement our development plans. The implementation of these plans requires an experienced partner from the financial sector who has a good understanding of the mining industry peculiarities and is able to cover the full range of required banking services. Providing the second phase of credit is a good demonstration of such cooperation and opens new horizons for us, cementing what we have achieved.
Diyar Kanashev, President – Chairperson of the Management Board of AK Altynalmas JSC:
"This spring, the third phase of the “Pustynnoe” Project was successfully launched, which became the first Altynalmas commissioned Mining and Processing Complex o with a capacity of over 5 million tons of ore. The next projects of a similar scale financed by VTB Bank are the Aksu Mining and Processing Complex (under construction) and Mizek Mining and Processing Complex, the construction of which we plan to start this year after opening a new credit line. The “Mizek” project expands Altynalmas' geographical presence to 4 regions of Kazakhstan: Akmola, East Kazakhstan, Zhambyl, and Karaganda. It should be noted that cooperation with VTB allows Altynalmas not only to develop its business but also to contribute to the overall development of the economy of Kazakhstan and its social landscape, creating new jobs, increasing tax payments, and contributing to the development of the region. At a time of global economic stagnation caused by the COVID-19 pandemic, this is especially important, and we are grateful to our partner for the trust and opportunity to make our contribution to the development of the economy of Kazakhstan".
Reference information:
VTB Bank
VTB Bank (PJSC), its subsidiary banks and financial organizations (VTB Group) is an international financial group providing a wide range of financial and banking services in Russia, CIS, Western Europe, Asia, and Africa.
VTB Bank provides a full range of banking services through an extensive regional network. The Group's subsidiary organizations provide leasing, factoring, and other financial services. VTB Group's international network includes more than 20 banks and financial companies in more than 20 countries.
As of June 30, 2020, VTB Group was Russia's second-largest financial group in terms of assets (RUB 16.3 trillion) and customer funds (RUB 11.9 trillion).
VTB's majority shareholder is the Government of the Russian Federation, which holds 60.9% of voting shares. More detailed information can be found at www.vtb.ru.
In the Republic of Kazakhstan VTB has been operating for more than 10 years and is represented by its Subsidiary VTB Bank (Kazakhstan).
AK Altynalmas JSC
Currently AК Altynalmas JSC has assets in four regions of the Republic of Kazakhstan: "Pustynnoe" project in the Aktogay district of Karaganda region, "Akbakai" project in the Moiynkum district of Zhambyl region, "Mizek" deposit in the East-Kazakhstan region, facilities of MMC KAZAKHALTYN JSC in Akmola region.