JSC “Industrial Development Fund,” with the support of JSC “NIKH ‘Baiterek’ and JSC ”Damou" Entrepreneurship Development Fund, is launching a new leasing finance program to modernize the production facilities of existing small and medium-sized enterprises in the manufacturing industry.

The program aims to increase support for SMEs to facilitate their technical equipping/re-equipping, the acquisition of new equipment, and the expansion of production capacities.

Leasing financing under this program operates on a phased basis. The total budget for the first phase is 5 billion tenge. Information regarding the allocation of funds for subsequent phases will be provided separately.

Key program terms:

1. Limit per lessee/group of companies: 1 to 300 million tenge.

2. Interest rate: 12.6%.

3. Financing term: 3 to 5 years.

4. Lessee’s contribution of own funds – 10% of the value of the leased asset.

5. The lessee’s period of operational activity must cover the full preceding calendar year.

6. Leased asset – new equipment that has not been previously used, manufactured no more than 3 years prior to the application date, and has undergone full customs clearance (the purchase of self-propelled machinery or medical equipment is not permitted).

7. The seller/supplier of the leased asset must be a domestic manufacturer or an official distributor/dealer of the equipment manufacturer, who is a resident of the Republic of Kazakhstan and holds official rights and licenses/certificates (if necessary) for the equipment (Leased Asset) and the production capacity to provide warranty and maintenance services for a period of at least 1 (one) year from the date of signing the equipment commissioning certificate.

8. Grace Period – None for interest; up to 6 months for the principal amount from the date of signing the Financial Lease Agreement.

9. Collateral – The leased asset, a personal guarantee from the lessee’s beneficial owners in the form of a legal entity. No additional collateral is required.

10. Repayment frequency – equal monthly installments.

Barriers to obtaining lease financing:

1. Presence of overdue debt as of the date of review.

2. Presence of official negative information casting doubt on the possibility or advisability of concluding and/or executing the transaction, including information that the lessee is in the process of reorganization, rehabilitation, or in the process of enforcement proceedings, as well as other negative information confirming the lessee’s improper operational activities and signs of unreliability.

3. The lessee’s period of operational activity is less than one full operational calendar year at the time of application submission.

4. The lessee’s turnover for the previous calendar year is less than one and a half times the value of the Leased Asset.

5. The lessee and/or the lessee’s beneficial owners and/or the Supplier and/or the Supplier’s beneficial owners are on a sanctions list.

6. The existence of overdue tax liabilities.

7. The lessee’s field of activity is related to the following industries:

– weapons manufacturing;

– alcohol production;

– production of narcotics, narcotic drugs, and psychotropic substances;

– tobacco product manufacturing;

– residential construction, unless such construction is an integral part of facilities in the hotel services sector;

– geological exploration;

– the gambling business.

* activities prohibited by the legislation of the Republic of Kazakhstan.

Under this program, the selection of potential applicants is conducted through the branches of JSC “Damou” Entrepreneurship Development Fund, which are located in all regions of the republic.

Funding for approved projects is provided by JSC “Industry Development Fund.”

Source: zakon.kz