37 Kazakhstani exporters received support from Baiterek Holding since the be-ginning of the year
Since the beginning of this year, Export insurance company KazakhExport JSC, a subsidiary of Baiterek NMH JSC has supported 37 Kazakhstani exporters, 10 of which received insurance support for more than KZT 1 bln. during the state of emergency, and 6 – used the tools of the company for the first time.
With the transition to remote labor organization, it was possible not only to save all business processes of KazakhExport, but also to increase the efficiency of interaction with customers, since the solution of many issues has moved to the online mode.
According to the results of the first quarter of 2020, the volume of obligations accepted by KazakhExport amounted to about KZT 19 bln., which is three times more than the same period in 2019; the amount of conditional deposits for pre-export financing and trade financing reached KZT 10.9 bln.; the amount of supported contracts amounted to more than KZT 50.7 bln.
In addition, projects worth KZT 29 bln. for 22 exporters in various industries and regions of Kazakhstan have been approved and are at the stage of concluding insurance contracts.
The Head of the Company, Ruslan Iskakov, told about successful cases supported by KazakhExport since the beginning of this year. For example, according to him, the largest domestic manufacturer of cable and wire products Kazenergokabel JSC not only actively participates in the government program for import substitution, but also develops foreign markets.
- We have concluded insurance contracts with the plant for three export contracts for supply of Kazakhstani products to Uzbekistan and Russia. Thanks to the insurance support of KazakhExport, a domestic exporter can safely ship its products to foreign contractors with deferred payment, while significantly increasing the volume of deliveries. The amount of insured export contracts was about USD 21.5 mln., - explained Ruslan Iskakov.
As part of the insured export contracts, the company opened a loan facility in a second-tier bank to replenish working capital. KazakhExport provided financing for this facility, thanks to which Kazenergokabel was able to get loans at a low interest rate. The total amount of pre-export financing provided was more than KZT 340 mln.
This year, such enterprises as Fidelis Global LLP, which specializes in the production and sale of pipes and fittings, and Novus Polymer LLP, the largest plastic extrusion and molding company, which was provided with insurance coverage for the financing Bank under the Loan Insurance tool, used KazakhExport support tools for the first time.
- With the help of this financial and insurance tool of KazakhExport, the companies managed to obtain financing for replenishment of working capital in the amount of KZT 400 mln., which, in turn, allowed to make additional purchases of raw materials and increase the volume of exported products to Uzbekistan and Tajikistan, - informed Ruslan Iskakov.
Among the projects supported since the beginning of 2020, there are also food producers. CG FOOD Central Asia LLP, being a part of CG Corp Global LLP, large International Corporation, consisting of 122 companies and having 76 representative offices in different countries, used KazakhExport tools for the first time. As part of the expansion of its production network, in December last year, the Corporation opened a factory for production of instant noodles in Turkestan region.
CG FOOD Central Asia LLP received insurance of export credit agreements for three foreign buyers in the Russian Federation. Now the exporter can safely ship its products to foreign contractors with deferred payment, while significantly increasing the volume of deliveries. The amount of insured export contracts was about RUR 130 mln.
The plant started supplying Kazakhstani instant noodles in early 2020 and plans to gradually expand the geography of exports to Russia and Uzbekistan.
- Current situation is a huge test for domestic business and the country as a whole. The main task of Baiterek Holding and its subsidiary KazakhExport at this difficult time is to support the growth of exports of non-primary goods, works, and services in priority sectors of the economy and to form a practice of financial, insurance and non-financial support for Kazakhstani enterprises. We continue to work actively; our regional managers are always in touch with manufacturers, local authorities and offer customers timely solutions for KazakhExport tools, - concluded Ruslan Iskakov.
Since 2017, KazakhExport tools have been used by 112 domestic exporting companies from different regions of Kazakhstan, operating in mechanical engineering, metallurgy, chemistry, food and light industry, and agro-industrial complex. Total amount of insurance support for these three years amounted to KZT 245.9 bln., of which KZT 97 bln. were accounted for the last year. In terms of regions, the largest amount of supported contracts falls on Almaty (KZT 71 bln), Kostanay region (48.3 bln), Pavlodar region (29 bln) and Aktobe region (17.6 bln).
