Kazyna Capital Management paid the second tranche to Burunday Mineral Waters

Funds in the amount of KZT 100 mln will be used to expand the Health and Recreation Resort in the village of Boralday, Almaty region, which was the first project financed under the Concessional Financing Program of Kazyna Capital Management JSC with the involvement of second-tier banks. The first tranche of KZT 100 mln was paid on August 7, 2019, and was aimed at expanding and developing the Resort. With the funds received under the second tranche, it is planned to purchase adjacent real estate and carry out major repairs, which will expand the Resort's ability to provide quality services. Both tranches were approved through Sberbank Kazakhstan. The pandemic, according to Serikbay Zharmukhambetov, the Director of Burunday Mineral Waters LLP, strongly influenced the activities of the company. "Since spring and by today, the sports and entertainment area has been closed. Before the quarantine, our services were popular among Kazakhstan citizens and guests from far and near abroad due to their unique concept of wellness recreation and the possibility of treatment in thermal baths throughout the year. Granting this, we hope that this area will recover as soon as possible after the abolition of restrictions." But the first tranche has also positive results. On the technical basis of the purchased facility, there is a Rehabilitation and Sanatorium Complex that offers all insured persons under the Compulsory Social Health Insurance Program (CSHI) recovery in such areas as traumatology and orthopedics, cardiology, neurology and neurosurgery, and recreation therapy. Since the beginning of 2020, more than 500 residents of Almaty and other regions have used these services of the Rehabilitation and Sanatorium Complex. The investment phase of the second tranche is expected to be completed by May 2021. Reference: Kazyna Capital Management JSC is a Private Equity Fund established in 2007, whose main mission is to develop private equity infrastructure in Kazakhstan to promote the sustainable economic development of Kazakhstan. It is a subsidiary of Baiterek NMH JSC. For more information, please visit: kcm-kazyna.kz. KCM Concessional Financing Program was launched in May 2019 to simplify business access to investment and expand the scope of using the direct financing instrument. Prerequisites for its development were the current problems constantly faced by domestic entrepreneurs: the high cost of financing, high credit burden, lack of collateral, lack of long-term lending, as well as onerous debt service terms. KCM Program offers the following financing conditions: the interest rate of 8% per annum, the amount of investments - up to KZT 5 billion with a period of up to 10 years. The participation of KCM in funded companies is limited to 49% in the capital, which ensures the safety of control over the management of the company for the entrepreneur. The program is implemented in two directions: support for corporate business and SMEs. The Program operators are KCM subsidiaries - Baiterek Venture Fund JSC and BV Management LLP. Also, partner banks were engaged under the program: Sberbank, Bank CenterCredit, VTB Bank.