DEVELOPMENT

DEVELOPMENT BANK
BANK OF
OF KAZAKHSTAN
KAZAKHSTAN

JSC Development Bank of Kazakhstan Instrument of State Investment Policy

Development Bank of Kazakhstan (DBK) was established in 2001 in

accordance with the Decree of the President of the Republic of
Kazakhstan and the Law of the Republic of Kazakhstan on Development
Bank of Kazakhstan
To facilitate the sustainable economic growth and development of the
Republic of Kazakhstan by providing long-term facility financing and
various financial services to non-extracting industries

Sole shareholder is the 100% Government owned Sovereign Wealth Fund

Samruk-Kazyna
Quasi-sovereign status and strong support from the Government of the
Republic of Kazakhstan
One of the most capitalised banks in Kazakhstan with strong shareholder
commitment (total equity USD 1.8 bln. (unprecedental capital injection
by USD 1.1 billion according to Government Decree dated September 28,
2009 No.1453), assets - USD 3.0 bln.)
Credit Rating: Baa2 (Moodys) / BBB- (S&P) / BBB- (Fitch)
In 2005, DBK subsidiary organization JSC DBK-Leasing was established

Sovereign Wealth Fund Samruk-Kazyna

Sovereign Wealth Fund Samruk-Kazyna is a joint stock company, established in October 2008 through
merger of Sustainable Development Fund Kazyna and Kazakhstan Holding for Management of State
Assets Samruk.
The sole shareholder (100%) of Samruk-Kazyna Fund is the Government of the Republic of Kazakhstan.
Samruk-Kazyna Fund is designated to extend maximum assistance to the Government of the Republic
of Kazakhstan, taking prompt and operative decisions on attraction of investments to real sector of the
economy, stirring up the activities in the regions, strengthening of inter-sectoral and interregional ties
utilizing to maximum extent the existing advantages and potential.
The main directions of the activities of Samruk-Kazyna Fund:
Assistance in modernization and diversification of the national economy;
Assistance in stabilization of the national economy;
Increase in efficiency of companies.
The subsidiary companies of Samruk-Kazyna Fund:

Development Bank of Kazakhstan

Kazyna Capital Management

Investment Fund of Kazakhstan

KazMunaiGas

National Innovation Fund

Kazakhstan Temir Zholy

State Insurance Corporation

KEGOC

Entrepreneurship Development Fund DAMU

Kazpost

KAZNEX

Kazakhtelecom

KazInvest

Other companies
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DBK Organizational Chart

DBK formed the efficient corporate governance system
in accordance with the best international practice

Board of Samruk-Kazyna Fund

Supreme Management Body

Internal Audit

Risks Committee

DBK Board of Directors

Audit Committee

Managing Body

Corporate Secretary
Compliance

Assignment and
Remuneration Committee

DBK Board

Executive Body

ALCO
Credit Committee

Management
Investment Committee
Budget Commission
Methodology Council
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DBK Main Objectives and Statutory Purposes

DBK Objectives

Provide medium-term (5 to 10 years) and long-term (10 to 20 years) financing for investment projects,
leasing and export operations in sectors of the economy considered to be development priorities and
reducing dependence on oil and gas revenues
Project, mezzanine, bridge, turnover capital financing
Act as a servicing agent for national and regional investment projects financed by the State Budget and
Government guaranteed borrowing
Earn a return on investments (ROI) sufficient to cover the average borrowing and operating costs

Statutory Purposes

Enhance the effectiveness of industrial investment activity of the Government of the Republic of
Kazakhstan
Attraction of foreign and domestic investments into Kazakhstans economy
Stimulation, development of industrial infrastructure and industries involved in the processing of extracted
raw materials (not related to oil and gas)

Priority Areas of Financing

Infrastructure
Energy
Metallurgy
Chemicals and Petrochemicals
Tourism

International Cooperation
SCO InterBank
Consortium

DBK is a full
member of
SCO InterBank
Consortium

International Financial Organizations

Signed MOU/Cooperation
Agreements:

Main Credit Lines

Japan Bank for International Cooperation

EBRD
Islamic Development Bank
China Development Bank
Development Bank of Turkey
EximBanka Slovak Republic
SCO Interbank Consortium
EximBank Romania
Vnesheconombank, RF
Korea Development Bank
IBRD
Nordic Investment Bank
EximBank USA
Mizuho Corporate Bank
Sumitomo Mitsui Banking Corporation
Bank of Tokyo Mitsubishi UFJ
Bayern LB
China Eximbank

China Export-Import Bank for

energy cooperation USD 5 billion
China Export-Import Bank for
Buyers credits USD 400 million
Vnesheconombank of Russia
USD 300 million
BNP Paribas for ECA financing
EUR 200 million
Fortis for ECA financing USD 250
million

Internationally recognized financial magazine Euromoney awarded DBK:

- The most dynamic Development Bank in the World (2005)
- The best bank in corporate governance in Central and East Europe (2007)

DBK Positioning

DBK does not compete with commercial banks, does not substitute social functions of the state
DBK basic niche is transport and energy infrastructure
DBK finances pilot projects in manufacturing industry to promote private investments
DBK refinances debts to second-tier banks of enterprises implementing investment projects
Main priority for industrial projects is their focus on export

Strong Risk Management Policies

Credit Risk

Single borrower & economic group limits

Limits on counterparty risk: 25% of DBKs equity

Product type / geographical / industry concentration limits

Continuous monitoring of borrowers condition and collateral

Duration analysis of assets and liabilities

Use of interest rate derivatives to hedge interest rate exposure

Manage currency exposure with clearly defined limits

Current limits defined for investment portfolio

Real-time monitoring of liquidity position based daily cashflows

Follow clearly defined conservative guidelines / targets to ensure liquidity:

Including for Debt / Equity and Guarantees / Equity, amongst others

Minimum capital adequacy ratio of 8%

Up to 20% of capital can be invested in export credits

Interest Rate Risk

Currency Risk

Liquidity Risk

Other Limits

Dynamics of DBK Lending to Kazakhstan Economy

Since the beginning of its activity, DBK has approved 176 investment projects and
export transactions to the amount of USD 12.5 billion with Banks participation of USD
3.5 billion
DBK loan portfolio is USD 1.9 billion
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THANK YOU FOR YOUR ATTENTION!

Contacts:
JSC Development Bank of Kazakhstan
10 Orynbor str., Kazyna Tower bld.
010000 Astana city, Republic of Kazakhstan
Tel. :
+7 7172 792652
Fax:
+ 7 7172 792638
E-mail: borrowing@kdb.kz
Web-site: www.kdb.kz

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