VTB Group and Atyrau Oil Refinery Plant ("AORP") signed a loan agreement to finance AORP, the drawdown amount constituted 38.2 billion rubles. The National Company “KazMunayGas” issued a corporate guarantee to secure the obligations.
The funds will be used to refinance a foreign currency loan taken from the “Export-Import Bank of China” for the implementation of the refinery modernization project.
Aidar Kaliyev, Operation Leader in Central Asia, Senior Vice President of VTB:
"The loan transaction with AORP is an important step in deepening the partnership relations between VTB Group and NC “KazMunayGas”, laying the foundation for their further development and opening access to the promising and capacious market of borrowings in rubles for the companies of the group. The implementation of this transaction, which is the largest for VTB in the oil and gas sector of Kazakhstan, confirms the leading position and powerful capabilities of the Bank to provide innovative financial solutions for Kazakh companies".
Dauren Karabayev, Deputy Chairman of the Management Board for Economics and Finance of JSC NC “KazMunayGas”:
"The transaction was carried out during the pandemic period, and despite the external difficulties was completed timely and successfully. The agreement with VTB allowed us to optimize and diversify the loan portfolio of KMG group and reduce the currency risks in general ".
Information
JSC “National Company “KazMunayGas” is the leading vertically integrated oil and gas company in Kazakhstan. KMG manages assets across the entire production cycle, from exploration and production of hydrocarbons to transportation, processing, and provision of services. It represents the interests of the Republic of Kazakhstan in the country's oil and gas industry. The shareholders are the National Welfare Fund “Samruk-Kazyna” (90.42%) and the National Bank of the Republic of Kazakhstan (9.58%). In 2020, the production volume amounted to 21.752 million tons of oil and 8.191 billion m3 of associated and natural gas. The refinery processed 18.077 million tons of oil.
The Atyrau Oil Refinery Plant (a subsidiary of JSC NC “KazMunayGas”) was built during the Great Patriotic War, and in 2010-2017 the company carried out a large-scale modernization. Thanks to modernization, all Atyrau Refinery products comply with emission classes K4 and K5, and the plant's capacity was increased by 500 thousand tons – up to 5.5 million tons per year.
VTB Bank (PJSC), its subsidiaries and financial organizations (VTB Group) is an international financial group providing a wide range of financial and banking services in Russia, the CIS countries, Western Europe, Asia, and Africa. As of June 30, 2021, its assets amounted to 19.6 trillion rubles, customers' assets – 14.3 trillion rubles. VTB's majority shareholder is the Russian Government, which holds 60.9% of voting shares.