Press room

Halyk Bank and the Damu Fund have signed supplementary agreements, expanding the financing terms for small and medium-sized enterprises engaged in the manufacturing industry, aimed at expanding entrepreneurship support tools in Kazakhstan. Thanks to the new terms, entrepreneurs will be able to attract more financing under a single program, which will allow for the implementation of larger-scale manufacturing projects.

The supplementary agreement is a continuation of the previously established effective cooperation between the Bank and the Damu Fund. As a reminder, under the Fund’s conditional placement programs, Halyk Bank has for several years provided entrepreneurs across the country with access to concessional financing - from investment projects to working capital replenishment. At the same time, the manufacturing industry remains a priority area - a sector that generates added value, creates jobs, and ensures the production of domestic goods.

The “Damu Ondiris” Program is aimed exclusively at small and medium-sized enterprises engaged in the manufacturing industry. These are production enterprises for which access to long-term and low-cost resources is a key condition for modernization and capacity expansion.

The key change was the introduction of a mixing mechanism: financing is carried out using a mixing proportion of Fund resources and the Bank's own funds in a 50/50 ratio. Now, financing is provided on a parity basis: for every tenge allocated by the Damu Fund, Halyk Bank adds one tenge of its own funds. This approach effectively doubles the volume of financing available to entrepreneurs. The Bank's participation on a parity basis expands the range of manufacturing enterprises that can take advantage of concessional financing at a rate of 12.6% per annum.

As Diyar Makulbayev, Director of the SME Lending Department at Halyk Bank, noted, support for the manufacturing industry is one of the bank's key priorities:

 The signed agreement allows us to significantly expand financing opportunities for manufacturing enterprises. Funds returned by entrepreneurs as loan repayments are supplemented on a parity basis by own resource of Halyk Bank. This allows the released funds to be directed toward the financing of new and existing projects without additional funding from the Damu Fund.

The funds received can be used for the purchase and modernization of production equipment, expansion of capacity, replenishment of working capital, or refinancing of previously obtained loans. The terms provide for convenient repayment schedules that take into account the enterprise's production cycle.

The second significant change was the increase in the maximum financing limit. The maximum amount per end borrower or group of related parties increased from 3.6 billion tenge to 7.0 billion tenge, taking into account existing obligations under all programs for the conditional placement of Fund resources.

"The increase in the maximum limit is one of the most significant changes to the program. Revising the limit of financing to 7 billion tenge is a timely decision that takes into account the current needs of enterprises of the manufacturing industry. Today, the implementation of production projects requires larger investments, so the new terms will allow for the support of larger projects", - noted Zhanna Zeinelova, Head of the SME State Programs Department at Halyk Bank

Entrepreneurs engaged in the manufacturing industry can visit the branches of Halyk Bank for detailed information and consultations on the program's participation terms.