Kazyna Capital Management JSC financed the second stage of the modernization project of the Stepnogorsk mini-refinery

The launch of the modernized production will create new jobs at the enterprise. LLP "Oil House" Astana-Oil "received the second tranche from JSC" Kazyna Capital Management "(KKM) through the subsidiary private equity fund" KCM Sustainable Development Fund I C.V. " (under the management of LLP "BV Management") in the amount of 941.2 million tenge for the implementation of the second stage of modernization of the mini-refinery in Stepnogorsk. The project is being implemented at the expense of investments under the program of concessional financing of KKM and the company's own funds. The first tranche in the amount of 3.9 billion tenge was sent to Oil House Astana-Oil LLP in September 2019. The mini-refinery specializes in the production of Arctic winter diesel fuel, the investments received were directed to the modernization of production. In particular, the second tranche received from KKM will be used for the implementation of the MK "OPTIMA-150" refinery with a catalytic conversion unit for medium fractions of hydrocarbons for the processing of summer diesel fuel and gas condensate into high-quality grades of winter diesel fuel, high-octane gasoline, and liquefied propane-butane gas. , furnace and marine fuel. The new innovative technology will increase the refining depth up to 95%, simplify and reduce the cost of the technological process, produce oil products with high added value and create new jobs in the region. - Thanks to the investments received under the first tranche to replenish working capital, we have stabilized and increased the supply of raw materials for processing, which will allow the enterprise, after the completion of the modernization, to reach full production capacity and reduce the deficit in Arctic and high-quality winter diesel fuel on the oil product market in Kazakhstan, says the General Director LLP "Oil House" Astana-Oil "- Vladimir Grishchenko. - We plan to implement the modernization in a timely manner, the pandemic had little impact on the plant's activities, since the main large buyers of diesel fuel, in particular subsoil users, continue to manufacture their products and purchase oil products in full. All jobs at the enterprise have been saved, production is proceeding according to schedule, and diesel fuel is being shipped in accordance with the signed contracts. After the introduction of a new refinery, we will also hire up to 10-15 specialists. Reference The KKM concessional financing program was launched in May 2019 in order to facilitate business access to investments and expand the coverage of the use of a direct financing instrument. Financing conditions: interest rate 8% per annum, investment amount - up to 5 billion tenge for up to 10 years. KKM's participation in financed companies is limited to 49% in the capital, which ensures that the entrepreneur retains control over the management of the company. The program is being implemented in two areas: support for corporate business and SMEs. The operators of the program are KKM subsidiaries - Baiterek Venture Fund JSC and BV Management LLP. Also, the program involved partner banks: Sberbank, Bank CenterCredit, VTB Bank. Kazyna Capital Management JSC is a fund of private equity funds, established in 2007, whose main mission is to develop private equity infrastructure in Kazakhstan in order to promote sustainable economic development in Kazakhstan. It is a subsidiary of JSC "NMH" Baiterek ". Additional information can be found on the website: www.kcm-kazyna.kz. BV Management LLP is a management company in the private equity market. Acts as a general partner for private equity funds DBKEF and KCM SDF. It is a 100% subsidiary of Kazyna Capital Management JSC. Additional information can be found on the website: www.kcm-kazyna.kz. https://forbes.kz/finances/investment/ao_kazyina_kapital_menedjment_profinansirovalo_vtoroy_etap_proekta_modernizatsii_stepnogorskogo_mini-npz/