Baiterek Holding to move $1B in three industrial projects to banks by year-end
By the end of 2026, Baiterek National Investment Holding will transfer three major industrial projects worth around $1 billion to second-tier banks, the holding's Chairman of the Board, Rustam Karagoishin, told a Senate briefing on Monday, Qazinform News Agency reports.
As he noted, second-tier banks have already received a portfolio of major investment projects worth $650 million that were developed through the Development Bank of Kazakhstan. The investment phase of these projects typically lasts 3-4 years.
Additionally, by the end of 2026, commercial banks will receive three projects worth $1 billion, followed by another seven projects totaling $3.5 billion.
"We are currently preparing additional deals for transfer worth approximately $1 billion. Another $3.5 billion constitutes a pipeline of projects whose investment phase is also approaching completion," Karagoishin clarified.
According to him, these are industrial projects that have already completed their investment phase and achieved their planned financial targets.
"These are projects that have already passed the investment phase. We primarily work on investment projects — the construction of facilities, industrial ones. These are factories and plants. So these are projects that are already up and running, generating a steady cash flow, meeting the financial targets set out in the business plan they initially set out. Therefore, for second-tier banks, it is a reliable borrower," the holding's chairman added.
Vice Minister of National Economy Arman Kassenov emphasized that the ministry supports the transfer of mature projects to commercial banks.
"We are extremely interested in ensuring that Baiterek and all the national development institutions under its umbrella cooperate with banks. Therefore, Baiterek Holding is open to refinancing second-tier banks' existing loans. This will, firstly, allow second-tier banks to become involved in financing real-sector projects. Secondly, it will free up funds for Baiterek Holding to provide new loans," he noted.
Furthermore, the authorities are considering a syndicated lending mechanism, under which commercial banks and development institutions will jointly finance projects.
Earlier, Baiterek Holding launched a unified front office for business support in Kazakhstan.
