Entrepreneurs & Business Growth

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Construction support in Kazakhstan

Subsidiaries of “Baiterek” Holding provide unequalled financial and project support for large construction projects across the country.

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construction funding
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“Baiterek Development” JSC

“Baiterek Development” JSC is the single financial operator of “Nurly zher” State Housing Construction Program for financing of credit housing construction through the mechanism of government securities repurchase of local executive bodies, and also implements its own investment projects in the construction industry.

Retirement of securities of local executive bodies

In order to increase the supply of affordable housing for the depositors of “Zhilstroysberbank of Kazakhstan” JSC, including standing in line at akimats, “Baiterek Development” JSC provides financing for the construction of credit housing by repurchasing of government securities of local executive bodies.

  • Repayment term - 2 years;

  • Coupon interest - 0.35% (payment 2 times a year).

Conditional financing of housing investment projects

The conditional financing of investment projects is carried out through the opening of deposit by “Baiterek Development” JSC in second-tier banks for the purpose of further loan granting to a private partner for the project implementation.

Mechanism 1: After completion of the construction and commissioning of the facility, the private partner transfers the residential premises to “Baiterek Development” JSC for the amount of the conditional deposit for the further sale of housing to the depositors of “Zhilstroysberbank of Kazakhstan” JSC.

  • Remuneration rate for second-tier banks - 1%;

  • Remuneration rate for a private partner - 5%;

  • Deposit opening period - no more than 2 years;

  • Project location - Almaty, Astana and suburban areas.

Mechanism 2: After the expiration of the conditional deposit term, the second-tier bank returns to “Baiterek Development” JSC the amount of the conditional deposit with accrued remuneration, and the private partner independently sales the residential premises of the facility and makes mutual settlements with the bank on the loan provided.

  • Remuneration rate for second-tier banks - the base rate of the NB of RK minus 1.5%;

  • Remuneration rate for a private partner - the base rate of the NB of RK plus 3.5%;

  • Deposit opening period - no more than 2 years;

  • Project location - Almaty, Astana and suburban areas.

Direct financing of housing investment projects

“Baiterek Development” JSC provides direct financing of housing investment projects by attracting of funds from international financial organizations on the principles of a public-private partnership, in accordance with the requirements of an international financial organization.

 

 

 

Financing of socially-oriented investment projects

“Baiterek Development” JSC also provides financing for the implementation of socially-oriented investment projects through the mechanisms of government securities retirement of local executive bodies, conditional financing through the second-tier banks and direct financing.

 

Socially-oriented projects include projects related to the construction of educational, cultural and everyday aspects of social life, health care and other urban facilities, health-improvement and recreational facilities, as well as other social infrastructure facilities of the cities.

 

Financing of socially-oriented projects is carried out subject to the guaranteed purchase of real estate from the balance of the Company, including on the principles of public-private partnership.