National managing holding KazAgro announces taking part in financing spring sowing to the amount of KZT61.1 bn

/KASE, April 8, 14/ – National managing holding "KazAgro" (Astana), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following information statement of April 8, 2014: quote The Kazagro national holding as a whole plans to direct on carrying out spring and field works of the current year to 61,6 billion tenge. In financing structure the main sum the budgetary credit of 40 billion tenge which for providing with necessary resources of agricultural producers is sent to the affiliated financing organizations of holding – Food contract corporation (14 billion tenge), makes Agrarian credit corporation (5,5 billion tenge), Fund of financial support of agriculture (500 million tenges). In addition for the first time "Kazagro" begins financing of spring and field works through banks of the second level. 20 billion tenge are allocated for these purposes from means of the budgetary credit. The new source of credit resources for a sowing campaign is started according to the Agrobusiness 2020 program for expansion of availability of financing for villagers. At present active financing of a sowing campaign in the south of the republic and to the main the grain sowing regions of the North of the country goes the companies of national holding. For example, in Agrarian credit corporation over 300 demands for 6,5 billion tenge arrived. From them 75 demands for the sum of 1,7 billion tenges are lent for today. In total in the current year within corporation programs to agrosector of the republic it is planned to send to 13 billion tenge. The food contract corporation carries out financing of grain producer for spring and field works for total amount of 17,6 billion tenge. From them in state resources during the spring and summer period the company plans to direct on purchase to 3,6 billion tenge, delivery time till December 1. On forward purchase it is supposed to allocate 14 billion tenge of funds of the budgetary credit at the rate of 6 thousand tenges for 1 hectare of a cultivated area and with a condition of payment of the commission at the end of financing term of 5% per annum from the financing sum. According to the decision of Food contract corporation, financing will be carried out according to the approved limits on areas. Purchase is made under guarantees of banks of the second level or social and enterprise corporations. Statement: Limits on forward purchase: Akmolinskaya – 4,28 billion tenge; Aktyubinsk – 490 million tenges; VKO - 490 million tenges; Karaganda – 670 million tenges; Kostanayskaya – 4,24 billion tenge; Pavlodar – 500 million tenges; SKO – 3,33 billion tenge. The fund of financial support of agriculture at the expense of own means carries out financing of landowners according to the Eginzhay program. Besides the company within the program of crediting of the microcredit organizations (MKO) for the subsequent crediting cotton producers is conducted by financing at the expense of means of the budgetary credit of 2,1 billion tenge. By data for April 1 the Fund from own means gave out 446,4 million tenges according to 114 demands. Now 173 more demands for 655,6 million tenges are approved. 62 demands are under consideration. Statement: Conditions on programs е "Eginzhay": the maximum sum of a loan – 6 million tenges, a rate of remuneration of 9,5% per annum, crediting term on forage crops no more than 36 months, and on other cultures no more than 18 months. Conditions through MKO: the maximum sum of a loan for MKO - 1 billion tenge, on the final borrower – 8000 MRP. Annual rate of remuneration – 4%, an effective rate of remuneration – 4,4% per annum for MKO, and 8% for the final borrower. "Kazagrofinance" in 2014 will direct on acquisition by villagers of equipment to 6,9 billion tenge. Today in the company arrived demands for the sum more than 12,7 billion tenge. As a whole, within carrying out spring and field works of this year "Kazagrofinance" assumes to get more than 1000 units of various agricultural machinery and the hinged soil-cultivating equipment to it. In addition, the Kazagro subsidiary within the investment program carries out financing of production of forages. According to this direction 754,7 million tenges are already invested in agrosector of Kazakhstan. Reference: JSC National Management Holding Kazagro realizes a state policy on development of agro-industrial complex of Kazakhstan by ensuring effective management with investment assets of the companies entering into its structure. JSC Kazagrogarant, JSC Kazagromarketing, JSC Food Contract Corporation, JSC Kazagroproduct, JSC Kazagrofinance, JSC Agrarian Credit Corporation, JSC Fund of Financial Support of Agriculture are the parts of holding. JSC Kazagro Holding press service Rinat Tasbulatov +7 701 460 91 82, R.Tasbulatov@kazagro.kz ph. (7172) 70-56-39, www.kazagro.kz unquote [2014-04-08]