Press releases
Kazyna Capital Management financed the 2nd stage of Stepnogorsk Mini Refinery Upgrade Project
The launch of the upgraded production will create new jobs at the Enterprise
Astana-Oil Oil House LLP received the second tranche from Kazyna Capital Management JSC (KCM) through KCM Sustainable Development Fund I C. V., a subsidiary Direct Investment Fund (managed by BV Management LLP) in the amount of KZT 941.2 mln for the implementation of stage 2 of Stepnogorsk Mini Refinery Upgrade. The Project is implemented at the expense of investments under KCM Concessional Financing Program and the Company's own funds. The first tranche of KZT 3.9 bln was made to Astana-Oil Oil House LLP in September 2019.
The Mini Refinery specializes in the production of Arctic winter diesel fuel, and the investment received was aimed at upgrading production. For instance, the second tranche received from KCM will be used for the integration of OPTIMA-150 STC oil refining plant with a unit for the catalytic conversion of hydrocarbon medium fractions for processing summer diesel fuel and gas condensate into high-quality grades of winter diesel fuel, high-octane gasoline, liquefied propane-butane gas, furnace and ship fuel. The new innovative technology will increase the processing depth up to 95%, simplify and reduce the cost of the technological process, produce oil products with high added value and create new jobs in the region.
- Due to the first tranche investments received for working capital financing, we have stabilized and increased the supply of raw materials for processing, which will allow the Company to reach full production capacity after the upgrade and reduce the deficit in the Arctic and high-quality winter diesel fuel in the oil product market in Kazakhstan, - says Vladimir Grishchenko, the General Director of Astana-Oil Oil House LLP. - We plan to implement the upgrade within the established time frame, the pandemic has not affected the Refinery's activities significantly, since the main major buyers of diesel fuel, in particular, subsoil users, continue to produce their products and purchase oil products in full. All jobs at the Company are retained, production is on schedule, and diesel fuel is shipped according to the concluded contracts. After the integration of the new oil refining plant, we will also additionally hire up to 10-15 specialists.
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KCM Concessional Financing Program was launched in May 2019 to simplify business access to investment and expand the scope of using the direct financing instrument. Financing conditions: the interest rate of 8% per annum, the amount of investments - up to KZT 5 billion with a period of up to 10 years. The participation of KCM in funded companies is limited to 49% in the capital, which ensures the safety of control over the management of the company for the entrepreneur. The program is implemented in two directions: support for corporate business and SMEs. The Program operators are KCM subsidiaries - Baiterek Venture Fund JSC and BV Management LLP. Also, partner banks were engaged under the program: Sberbank, Bank CenterCredit, VTB Bank.
Kazyna Capital Management JSC is a Private Equity Fund established in 2007, whose main mission is to develop private equity infrastructure in Kazakhstan to promote the sustainable economic development of Kazakhstan. It is a subsidiary of Baiterek NMH JSC. For more information, please visit: www.kcm-kazyna.kz.
BV Management LLP is a management company in the private equity market. It acts as a General partner for DBKEF and KCM SDF private equity funds. It is a 100% subsidiary of Kazyna Capital Management JSC. For more information, please visit: www.kcm-kazyna.kz.