“KazAgroFinance” JSC is a leasing company carrying out its activities for over 15 years to support the development of the agricultural sector of Kazakhstan. As of today, the Company is a leading company at the leasing market holding the share of 63%. The Company’s credit portfolio includes over 4 thousand of borrowers.
For 2000-2015 KazAgroFinance had allocated USD2.4 mlrd. for development and support of the agricultural sector. While 59% of these funds were the budget ones, and the other sources of financing are own and borrowed funds. Totally, we have financed the purchase of over 33 thousand units of agricultural machinery and equipment that is over 55% of the total machinery delivered to the country. Moreover, the Company has a wide regional network and is represented by 14 branches across Kazakhstan.
KazAgroFinance is under audit by the world leading company “Ernst & Young”, as well as it is rated by the international reputable rating agencies. The positive financial performance and the crafted positive image allow KazAgroFinance to be highly rated by such reputable agency as Fitch Ratings.
On 02 May 2017 Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of KazAgroFinance JSC at 'BB+' and revised the Outlooks to Negative from Stable.
The current social and political stability of Kazakhstan is the blueprint of the favourable investment climate in the country.
Such conditions have been created as:
-exemption from the tax duties when importing equipment, parts, raw materials and spare parts (in Russia the customs rates for these goods are 5 to 15% of the customs value);
-state land grants: land plots, buildings, structures, machines and equipment, computing machines, measurement and control devices and units, vehicles;
-tax advantages for up to 7 years for investment strategic projects (land tax 0%, property tax 0%);
-industrial privileges for investment strategic projects in the regions with low level of social and economic development.
These investment preferences are provided only when implementing the projects in the priority agricultural activities, except for construction of greenhouses.
Furthermore, the signed Eurasian Economic Union Founders Agreement (Kazakhstan, Russia and Belarus) ensures the duty-free trade in the territory of the union participants, whereby essentially expanding the market. Today we also have opportunities to arrange the production facilities in the territory of free-economic zones located in all regions of the country. The important peculiarities of the free-economic zones are a preferential tax treatment, as well as the possibilities of state security of all necessary infrastructure (allocation of land plots, supplying the communications and other).
Last year, the deal by KazAgroFinance JSC on issue and flotation of 5-year tenge bonds for KZT8 mlrd. was recognized by EMEA Finance as a winner in “Best local currency bond in EMEA”.