Rinat GAPPAROV
Chairman of the Management Board
Industrial Development Fund JSC
Industrial Development Fund JSC
DEAR CLIENTS, PARTNERS, AND COLLEAGUES!
On behalf of Industrial Development Fund JSC, I would like to express sincere gratitude for the productive collaboration and trust you have placed in us.
2023 was a significant and eventful year for us, marked by numerous achievements and milestones. We are delighted to reflect on the year and share our successes with you.
President Kassym-Jomart Tokayev in his Address to the people of Kazakhstan dated September 1, 2023 «Economic course of a Fair Kazakhstan» highlighted the crucial importance of operational efficiency in state support for businesses.
One of the objectives set forth was the implementation of a large-scale digitalization initiative within National Managing Holding Baiterek JSC. The Industrial Development Fund has been actively engaged in digitizing its services to enhance customer service quality. In 2023, the Fund introduced a "Personal Account" system on its corporate website, significantly simplifying interaction between clients and the Fund. The "Personal Account" enabled entrepreneurs to submit financing applications online and track their progress throughout all stages of review.
2023 was a significant and eventful year for us, marked by numerous achievements and milestones. We are delighted to reflect on the year and share our successes with you.
President Kassym-Jomart Tokayev in his Address to the people of Kazakhstan dated September 1, 2023 «Economic course of a Fair Kazakhstan» highlighted the crucial importance of operational efficiency in state support for businesses.
One of the objectives set forth was the implementation of a large-scale digitalization initiative within National Managing Holding Baiterek JSC. The Industrial Development Fund has been actively engaged in digitizing its services to enhance customer service quality. In 2023, the Fund introduced a "Personal Account" system on its corporate website, significantly simplifying interaction between clients and the Fund. The "Personal Account" enabled entrepreneurs to submit financing applications online and track their progress throughout all stages of review.
One of the main events for the Fund this year was the approval of the Development Strategy for 20242033, which sets ambitious goals and tasks for the Fund to reach new heights. Additionally, amendments were made to the Rules of Operation, allowing the Fund to provide financing to second-tier banks, private leasing companies, social entrepreneurship corporations, and other financial organizations.
During the reporting period, the Fund attracted investments totaling 331,754,976 thousand tenge. The authorized capital was increased by 135,000,000 thousand tenge, and the net profit amounted to 23,567,497 thousand tenge. Since the introduction of the credit instrument, the Fund has disbursed loans totaling 186 billion tenge.
This includes 100 billion tenge to second-tier banks, 60 billion tenge to leasing companies, and 26 billion tenge to investment projects. As of December 31, 2023, the leasing and credit portfolios of the Fund exceeded 1,185,000,000 thousand tenge.
The international rating agency Moody's Investors Service upgraded the Fund's long-term ratings from "Ba2" to "Ba1" with a "positive" outlook, confirming the reliability and effectiveness of our operations. Additionally, we have initiated efforts to implement ESG principles, and in 2024, we intend to obtain an ESG rating.
During the reporting period, the Fund attracted investments totaling 331,754,976 thousand tenge. The authorized capital was increased by 135,000,000 thousand tenge, and the net profit amounted to 23,567,497 thousand tenge. Since the introduction of the credit instrument, the Fund has disbursed loans totaling 186 billion tenge.
This includes 100 billion tenge to second-tier banks, 60 billion tenge to leasing companies, and 26 billion tenge to investment projects. As of December 31, 2023, the leasing and credit portfolios of the Fund exceeded 1,185,000,000 thousand tenge.
The international rating agency Moody's Investors Service upgraded the Fund's long-term ratings from "Ba2" to "Ba1" with a "positive" outlook, confirming the reliability and effectiveness of our operations. Additionally, we have initiated efforts to implement ESG principles, and in 2024, we intend to obtain an ESG rating.
In 2023, with the support of the Fund, several projects were successfully implemented and put into operation. These projects include: the «Acquisition of a third cement packaging line» requested by PC Cement Plant Semey LLP, «Organization of automobile production using the method of small-scale assembly of LADA and KIA brands in the Republic of Kazakhstan within the industrial zone in Kostanay city, Kostanay region» requested by SaryarkaAutoProm LLP, financing commenced for the investment project «Increasing the localization level of leading bridge beams for commercial vehicles» requested by KamLitKZ LLP.
At the end of the year, the Fund financed 258 leasing transactions totaling 487,083,342.47 thousand tenge. Across all regions of the country, 1,243 units of buses, 191 units of tractors, combines, and agricultural equipment, 295 units of special-purpose vehicles, and 523 units of firefighting and police vehicles were leased.
Additionally, 3,335 units of equipment were acquired, along with 3 helicopters for forestry aviation activities, and 3,290 units of passenger and freight cars operating on Kyzylorda-Semey, Pavlodar-Turkestan, and AtyrauAstrakhan routes. In 2024, the Fund will continue to actively promote the accelerated development of the manufacturing sector by implementing measures under the Law "On Industrial Policy", the national project "Sustainable Economic Growth aimed at improving the well-being of Kazakhstanis" and "The Concept of development of the manufacturing industry of the Republic of Kazakhstan for 2023-2029".
I am sure that thanks to our efforts and joint work we will be able to achieve even greater success next year!
At the end of the year, the Fund financed 258 leasing transactions totaling 487,083,342.47 thousand tenge. Across all regions of the country, 1,243 units of buses, 191 units of tractors, combines, and agricultural equipment, 295 units of special-purpose vehicles, and 523 units of firefighting and police vehicles were leased.
Additionally, 3,335 units of equipment were acquired, along with 3 helicopters for forestry aviation activities, and 3,290 units of passenger and freight cars operating on Kyzylorda-Semey, Pavlodar-Turkestan, and AtyrauAstrakhan routes. In 2024, the Fund will continue to actively promote the accelerated development of the manufacturing sector by implementing measures under the Law "On Industrial Policy", the national project "Sustainable Economic Growth aimed at improving the well-being of Kazakhstanis" and "The Concept of development of the manufacturing industry of the Republic of Kazakhstan for 2023-2029".
I am sure that thanks to our efforts and joint work we will be able to achieve even greater success next year!
