Captive Fund of Kazyna Capital Management financed domestic enterprises in western Kazakhstan

Baiterek Venture Fund (captive fund of Kazyna Capital Management JSC) provided financing to two domestic enterprises in Atyrau and West Kazakhstan regions in the amount of KZT 1.14 and KZT 1.55 bln. This year, funding was provided to Compass Service LLP, which specializes in construction, and KazArmaProm LLP, activities of which are aimed at the development of the country's mechanical engineering industry. Compass Service LLP offers comprehensive solutions in the area of construction and installation work, information technology, security systems, fire protection systems and related infrastructure. The company has a portfolio of projects implemented in cooperation with Tengizchevroil, Caspian Pipeline Consortium and North Caspian Operating Company N.V. (NCOC). Funding of Compass Service LLP is aimed at acquiring fixed assets in Atyrau region and working capital financing for further expansion of the company's activities. Acquisition of fixed assets will improve the quality of services provided, as well as increase competitiveness among similar foreign enterprises and lead to an increase in the share of Kazakhstan content. 125 jobs have already been created as a result of funding. It is planned that the implementation of the project will lead to an increase in tax payments by Compass Service LLP to KZT 370 mln. cumulatively for the years from 2022 to 2026. KazArmaProm LLP produces grinding balls in West Kazakhstan region. The company's long-term experience allows us to increase and develop foundry production in the west of Kazakhstan, ensuring the comprehensive development of mechanical engineering in the country. The company employs more than 250 employees. In 2021, the company produced 18.9 thousand tons of finished products worth KZT 4.8 bln., of which export revenue amounted to KZT 4.7 bln. or more than 97%. Financing was provided to KazArmaProm LLP to replenish working capital and refinance the existing loan debt in Sberbank JSC in order to improve the financial condition of the company. By attracting funds, KazArmaProm LLP plans to increase working capital and switch from a two-shift to a three-shift operation, which will increase the production of grinding balls by 47%. In 2022, the company reached agreements with the local executive bodies of Aktau for production of headers of lighting poles for urban area improvement. It is planned to conclude a similar contract in Nur-Sultan. "Being a leading player in Kazakhstan's private equity market, Kazyna Capital Management JSC (a subsidiary of Baiterek NMH JSC) has a deep understanding of the market and is focused on financing non-resource sectors of the economy in different regions of the country. To date, there are 4 investment projects in KKM's portfolio, financed in the western regions of Kazakhstan for a total amount of KZT 9,913 mln. Financial support provided to Compass Service LLP and KazArmaProm LLP will allow them to increase their competitiveness in the international arena, improve business processes, which will undoubtedly serve the development of the region and manufacturing sector of the country as a whole," said Yernur Kulazhanov, Deputy Chairman of the Management Board. For reference: 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 to promote sustainable economic development of Kazakhstan. It is a subsidiary of Baiterek NMH JSC. Additional information can be found on the website: kcm-kazyna.kz . Baiterek Venture Fund JSC is the Private Equity Fund established in 2014; it provides financial support to domestic companies operating in priority sectors of the economy of Kazakhstan. It is a 100% subsidiary of Kazyna Capital Management JSC. Additional information can be found on the website: bvfund.kz