Foreign and Kazakh banks’ syndicate to finance soda production in southern Kazakhstan Development Bank of Kazakhstan JSC (DBK), Halyk Bank of Kazakhstan JSC, Singaporean ING bank, Chinese Bank of China and Sinosure signed an intercreditor agreement to finance the construction of a soda ash production plant in the Zhambyl region, the press service of DBK reported.The total cost of the project is about 207 billion tenge, DBK is to invest 12 billion tenge.It is noted that Sinosure will provide insurance coverage for borrowed funds from ING bank and Bank of China.“This transaction was the first in the history of DBK, completed using a syndicated financing instrument with the participation of foreign banks under English law,” DBK Chairman of the Board Marat Elibayev is quoted as saying in the press release.The enterprise will be the first manufacturer of soda ash in Kazakhstan, with the capacity of 500,000 tonnes of product per year.“The implementation of this project will ensure significant import substitution for soda ash, strengthen the raw material security of the domestic market and provide Kazakh producers with the above-mentioned products from a domestic supplier,” the DBK informed.Moreover, the enterprise has export potential and will create 255 permanent jobs in the Zhambyl region.Soda ash (or sodium carbonate) is widely used in the metallurgical, chemical, glass, pulp and paper, paint and petroleum industries.Development Bank of Kazakhstan (DBK) was organized in 2001. The bank finances medium- and long-term investment projects in infrastructure and non-resource sectors and attracts external and internal investment in the republic. DBK is part of National Holding Baiterek.The official exchange rate as of April 26 is 444.22 tenge/$1. (ICE ALMATY)

Fonte notizia: Interfax