The challenge to overcome
RG Brands lacked resources to increase its production capacity for foreign market entry and had no collateral security in order to be financed by Eurasian Bank of Development.
How KazakhExport helped
KazakhExport as an affiliated company of National Managing Holding Baiterek provides a guarantee for Eurasian Bank of Development to compensate losses in case of non-implementation of liabilities by borrower. In return for that KazakhExport signs an insurance agreement with RG Brands Kazakhstan.
Resulting in $25.6m of exports
Owing to “KazakhExport” participation and insurance of RG Brand’s loan, the latter was financed by Eurasian Bank of Development and finally started exporting goods to Russian Federation, Kyrgyzstan, Turkmenistan and Tajikistan.
In May 2017 Eurasian Bank of Development (EABD) and RG Brands Kazakhstan (RG BK) agreed to sign loan contract regarding financial operation of RG BK in frame of its further financial development. According to loan agreement, EABD provides 7.5 billion tenge for three years.
This was the first use by EABD of the loan insurance product. KazakhExport became the provider of insurance cover. The project also helped further the EABD strategy and mission. The project is dedicated to promote mutual trade between state-participants of the Bank and it is planned that RG Brand’s export of goods will contribute to more than 25% of company’s total sales.