There will be a new agricultural investment fund
The national holding "KazAgro" will intensify the attraction of direct investments in the sphere of agro-industrial complex
Until the end of 2016 Kazakhstan plans to create a Fund of Agricultural Investments, its management company will be FPP Asset Management LLP. "The new fund is created entirely by "KazAgro" - said at today's press conference, the Managing Director of the Financial Holding "KazAgro" Banu Ergalieva.
According to B. Yergalieva, the initial capitalization of the project will be at the level of 50 million USD, the end capitalization is expected at the level of 300 USD. "It's a mix of funds, we expect to use both public funds and borrowed funds", - she noted. Attraction of investors from side of "KazAgro" is planned from the second and third year of the existence of the New Fund.
"If to talk about the indicative terms, currently, "KazAgro" considers around 20 projects", - added B. Ergalieva. However, she said, that "we can’t talk that 20 projects will be implemented in the first". By the experience of the Kazakh-Hungarian private equity fund, which has become a pilot project of "KazAgro", its management company within six months considered 100 projects, of which three projects are at the selection stage”.
The aim of the Fund is to develop existing AIC projects, which are currently experiencing a shortage of resources, as well as funding for new, for example, in animal husbandry, poultry farming, fish farming, dairy production. Projects will include primary production, processing, logistics, storage and supply of means of production and trade.
Banu Ergalieva stated that, "speaking of the potential of the agricultural sector, we should not forget about the risks". "If to talk precisely – it is underdeveloped infrastructure, both marketing and logistics, underdeveloped instruments for hedging branch risks, unfortunately, we do not have it, it's a small scale nature of business itself, and as a result, technical backlog. We see it all. Nevertheless, we believe that the potential is high, the conditions, which are created for agribusiness, cover the risks", - summed up the manager of "KazAgro".
Zhanar Serdalina
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