Sustainable Development Fund Kazyna

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Sustainable Development Fund Kazyna
Düsseldorf 17 November 2006
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Content

• Innovative industrial development strategy
• Fund Kazyna
• Instruments of Fund
• Cooperation with investors
• Conclusion

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Diversification

• Innovative Industrial Development Strategy for
  2003-2015
• 2003-2005 Creation of innovative and financial
  infrastructure (reforms, 7 development
  institutions created, projects financed)
• 2006-2010 Consolidation of all resources.
  Large-scale investment and innovative activities
  in all sectors of economy
• 2011-2015 Creation of new competitive industries.
  Balanced diversification achieved.

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Fund Kazyna

• Sustainable Development Fund Kazyna was created
  by the Decree of the President of the Republic of
  Kazakhstan with the purpose to increase and
  stimulate investment and innovation activities.
• Mission
• Effectively manage state investments to diversify
  and increase competitiveness of economy of the
  Republic of Kazakhstan.
• Strategy
• Identification and implementation of investment
  projects in non-extractive sector through
  coordination of National Development Institutions

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Fund Kazyna structure
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Fund Kazyna instruments

• Development Bank
• Investment Fund
• SME Support Fund
• State Insurance Corporation
• Investment Promotion Agency Kazinvest
• CMAR
• National Innovation Fund

• Long term debt
• Equity financing
• SME development
• Insurance of KZ exporters and investors
• Information campaigns and assistance to potential
  investors
• Market and policy analysis
• Venture funds, grants for RD, innovation
  infrastructure

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Our niche

• Long-term financing (5-20 years) of competitive
  projects in non-extractive sector
• Analytical support to government, private sector
  to increase investment activities

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Fund Kazyna portfolio

• Charter Capital of Kazyna
  1 bln.
• Approved investment projects
  3,5 bln.
• Participation of Kazyna
  1 bln.
• Investment plans for (2007-2010)
  10 bln.

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Investment priorities

• Petrochemical industry
• Chemical industry
• Metallurgy
• Machinery
• Biofuels
• Energy
• Construction materials
• Transport and logistics
• Oil and gas machinery and services
• Food production
• Other non-extractive industries

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Financed projects

• Project name Production of bioethanol
• Markets Europe, Russia, China, Middle East
• Investment 64 mln
• Location Northern Kazakhstan
• Initiator Local company
• gtThe first plant in CIS

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Financed projects

• Project name Production of glass
• Markets Kazakhstan, Russia, Central Asia, China
• Investment 165 mln
• Location Southern Kazakhstan
• Initiator Local company, Pilkington (2nd largest
  producer of float glass in 2004-2005 with world
  market share of 15).
• gt First production of high quality glass in
  Kazakhstan

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Financed projects

• Project name Railroad Shar-Ust-Kamenogorst
• Investment 124 mln
• Location Eastern Kazakhstan
• Initiator Local Company
• gt Utilization of private-public partnership
  mechanism, issuance of infrastructure bonds

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Financed projects

• Project name Alatau City IT Park Special
  Economic Zone
• Location Almaty
• Initiator Government of Kazakhstan
• gt Alatau IT City is created with the vision of
  being the premier destination for high-tech
  industry in Central Asia software development,
  hardware manufacturing, telecom, business
  services, consulting, education and training.

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Reasons to invest in Kazakhstan

• Favorable investment climate (regulations,
  positive investment ratings)
• Proximity to large markets
• Common trade environment with Russia and Central
  Asia ( 250 mln. people)
• Rich raw base
• Low cost factors of production (raw materials,
  energy, land)
• Tax incentives for priority industries
• Infrastructure (industrial zones, free economic
  zones, IT park)
• Government support

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Strategic investors

• Organization of production/service/RD through
  combination of capital, technology, know-how and
  management to create high-growth competitive base
  for the regional and global markets.

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Role of Kazyna

• Identification of investment opportunities
  (industry master-plans, projects)
• Local partner identification
• Administrative support (regulations, relations
  with government authorities)
• Provision of long-term financial instruments
  (debt and equity)

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Cooperation with investors
Equipment Providers
Strategic Investor
Investment Project
Fund Kazyna
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German investors in Kazakhstan

• ThyssenKrupp
• MAN
• Siemens
• DEG
• Heidelberg Cement
• Henkel
• KNAUF

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Conclusion

• We invite companies to invest capital,
  technology, know-how, and business experience to
  the economy of Kazakhstan.
• We provide government support through provision
  of analytical reports and long-tern financial
  resources.
• Kazyna is a gateway for investments into
  Kazakhstan and Central Asia.

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Contact Information

• For more information and discussion of investment
  projects in Kazakhstan
• Sustainable Development Fund Kazyna
• Astana, Business Center Arman, 4th floor
• Tel [phone]
• Fax [phone]
• E-mail dip_at_kazyna.kz