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EDB to finance construction of automobile factory in Kazakhstan
The Eurasian Development Bank (EDB) and "ASIA AUTO Kazakhstan" JSC company have signed a loan agreement on financing construction of automobile factory with a full cycle production in Ust-Kamenogorsk city, the press service of the EDB said in a statement.
The terms of the agreement provide for investment lending in the amount of four billion rubles for a period of 10 years.
The document was signed in the presence of the President of "AVTOVAZ" PAO (a publicly held company under the laws of the Russian Federation) company Yves Karakatsanis. It was signed by Deputy Chairman of the Management Board, State Secretary at the EDB Andrey Krainiy and Chairman of the Board of Directors of the Group of Companies "BIPEK AUTO – ASIA AUTO" Anatoly Balushkin.
"The EDB will provide financing for the project in terms of the supply of technological equipment for workshops engaged in welding and painting of the automobile body. The commissioning of as less as the first stage of the facilities under construction will allow for annual production of 60,000 vehicles in a full cycle mode and proceeding with creation of a Technopark for the production of automotive components," said the bank.
"The deepening of technological conversion will provide an increase in the level of localization of the manufactured vehicles up to 50 percent. At the same time, the share of automotive components produced in the territory of the Eurasian Union will approach the level of 90 percent," the bank stated.
Kazakhstan will become the key market for the products of the future production complex, with the opportunity to carry out export to the countries of the Eurasian Union and Central Asia under the control of AVTOVAZ company.
It is reported that the new facility will be the largest production enterprise in the history of the engineering industry of Kazakhstan and the most ambitious project of Russian-Kazakh industrial cooperation.
The "AVTOVAZ" PAO is the holder of a blocking stake in the authorized capital of the "ASIA AUTO Kazakhstan" JV JSC company (25 percent + one share). The remaining shares are owned by the main investor in the person of the "BIPEK AUTO – ASIA AUTO" Group of Companies.
At this stage, the "BIPEK AUTO – ASIA AUTO" holding has invested $67,1 million of its own funds into this project.
The official exchange rate on August 31 is 68.0821 RUB/USD
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