The Development Bank of Kazakhstan (a subsidiary of the Baiterek Holding Company, hereinafter referred to as the Bank, the DBK) opened financing of pre-export operations of the Shymkentmai JSC in the amount of KZT 3 billion for a period of up to 2 years. The loan provided will allow the Company to expand the sales territory of its products, as well as increase its exports (primarily the vegetable oil), in particular, to China and Afghanistan.
The deal was financed within the framework of the Nurly Zhol State Program for Infrastructure Development for 2015-2019 in order to stimulate the export of Kazakhstan's products in the manufacturing sector.
"Pre-export financing from the DBK will allow the Borrower to make a timely purchase of oilseeds from domestic producers for further processing, as well as sale of vegetable oil and secondary products on the foreign markets. Purchase of new year raw materials is necessary so that the Company can plan a manufacturing program for the forthcoming period, as well as its export strategy. Since the Shymkentmai is the largest producer of oil crop processed products in Kazakhstan, lending of pre-export operations of the enterprise as a whole increases the export potential of the agro-industrial complex of our country, "said the Senior Banker of the DBK Vladimir Li.
In turn, Nataliya Kharipova, the Financial Director of the Shymkentmai JSC, stressed that China is one of the perspective export directions for the Company. "Kazakhstani food products are synonymous with organic food for Chinese consumers. We have experience in supply of vegetable oil to this country. It is important for the Company to develop the export of finished products to the vast Chinese market with a financial partnership with the DBK, " added N. Kharipova.
China's share in the export earnings of the Shymkentmai increased to 15.6% as of the first half of the current year from 11.3% for 2016. In general, the geography of the Company's exports, besides China, currently includes Uzbekistan, Tajikistan, Kyrgyzstan, Iran, Afghanistan, Russia and other countries. The planned volume of export supply of products for 2017 is about 15,000 tons of vegetable oils.
At the moment, the Shymkentmai produces about 25,000 tons of vegetable oil per year, feed meal - about 50,000 tons, about 7,000 tons of laundry soap. More than 50% of the Company's earning comes from exports of products. In the first half of the current year, the volume of supply of products of the Shymkentmai JSC to the foreign markets amounted to more than KZT 5 billion, which is KZT 1.7 billion more than in the same period in 2016. The Company plans to expand the range of manufactured products and increase the depth of processing of raw materials.