KDB enters the capital of the plant AtyrauNefteMash
JSC “Development Bank of Kazakhstan” and JSC Kazyna Capital Management create a private equity fund with a capitalization of $ 100 million. The plans are the additional capitalization of the plant of oil machine building “AtyrauNefteMash” in Atyrau region. Earlier, the state financial institute opened a credit line for 10.6 billion tenge for the expansion of the enterprise.
Subsidiaries of the national managing holding “Baiterek” – Development Bank of Kazakhstan JSC (DBK) and Kazyna Capital Management JSC (KCM) can complete the work on the creation of the BRC KSM fund by the end of 2017. It will provide additional financing for the projects credited by DBK through entering into their capital through the acquisition of shares or participation interests (non-controlling interest). Return of investment will be carried out by withdrawing from the ownership of the owners upon expiration of the agreed period with a certain profitability.
“All documents on the creation of the fund will be approved by the end of the year. The fund will consider entering into the capital of companies for a period of three to seven years. The amount of the fund’s capitalization is $ 100 million, projects will be financed in tenge. DBK’s projects will be considered, “Adil Ismagambetov, managing director of Development Bank of Kazakhstan JSC, said in an interview with ABCTV.
At present, the fund is preparing to purchase a stake in AtyrauNefteMash LLP (AMN), which in May 2017 received a loan from DBK to expand the plant’s capacities. The total cost of the expansion project is 15.3 billion tenge. DBK granted a loan of up to 14 years in the amount of 10.6 billion tenge within the framework of the state program of industrial and innovative development of the Republic of Kazakhstan for 2015-2019. Under the terms of the loan, “AMN” undertakes to finance 30% of the cost of the investment project. According to Sagat Tugelbayev, the founder of AtyrauNefteMash LLP, while fulfilling the requirements of DBK, the enterprise faced a shortage of working capital in the amount of one billion tenge (about $ 10 million) at the moment.
“We are distracting all means to fulfill DBK’s requirement for our own participation in the expansion project. To purchase material for signed contracts, there is not enough money. We urgently need working capital, otherwise, by signing a contract with the same “Tengizchevroil”, we begin to rack our brains, where to get money to buy the material, “explained Sagat Tugelbayev.
“We directly, as a development bank, through our affiliated organization, possibly, will enter into capital and provide working capital for” AMN “. The need for working capital for the “AMN” project is one billion tenge, “Mr. Ismagambetov added.
“ASM” and DBK have already signed an agreement of intent (Letter of Intent) regarding the transaction.
“At the preliminary meeting, we signed the first papers. We have a chance before the New Year to realize this (selling a stake in the “ASM.” – Autoref.). A decision has been made about this, the indicative has already been adopted, “Mr. Tugelbayev confirmed.
At present, the “ASM” has signed contracts for 3.8 billion tenge and at the stage of signing another four billion tenge. For example, the company fulfills orders for projects Karachaganak Petroleum Operating (KPO), Tengizchevroil (TCO), Atyrau Oil Refinery and others.
“The cost of the contract” Karachaganak Petroleum Operating “- $ 5 million (about 1.6 billion tenge). With Tengizchevroil, we have a contract for $ 8 million (about 2.6 billion tenge), including two contracts with TCO contractors. The total value of contracts already concluded is KZT3.8 bln. There are contracts in dollars, and in tenge. We all transferred to tenge. With them, we have work until April 2018, “explained the general director of LLP” AtyrauNefteMash “Alexander Donskov.
Recall, “ANSH” is implementing an expansion project, as a result of which the plant’s production capacity will be increased 2.5 times – up to 20,000 tons of engineering products per year. The enterprise plans to launch the production of new product names for oil-producing and oil refining enterprises according to international standards ANSI, API, ASME: large-size and super-heavy products, including separation columns, reactors, bullets, technological modules, heat exchangers; metal products with anti-corrosive zinc coating, including welded gratings of increased strength; forged products, including flanges, caps, rings, discs from 1.27 cm to 2.5 meters in diameter, with a maximum weight of 3,500 kilograms.
The project includes the completion of the construction of hot-dip galvanizing shops, greeting, as well as an auxiliary workshop of the plant. Today, the construction of the main assembly and assembly shop has been completed. It is designed for the production of super-oversized and super-heavy products, such as separation columns, reactors for petrochemical and oil refining, bullets, process modules, heat exchangers and other large-sized products. At the same time, construction work is being completed in the auxiliary workshop, which has two technologically separated spans. In one of the spans, equipment will be placed to perform harvesting and processing operations, including the production of metal structures such as gratings.
The construction of a new production line is the second stage of the investment project launched by AtyrauNefteMash in 2013 with the commissioning of a complex for the production of oversized products.