FINANCING OF UNION OF AGRICULTURAL COMMODITY PRODUCERS AND RURAL SECTOR FOR JOINT PRODUCTION, SEMIFACTURING, SELLING, PROCESSING, STORING, TRANSPORTATION OF AGRICULTURAL PRODUCTS AND SUPPLY WITH INVENTORIES

Characteristics of credit terms

Credit terms

Aim of the Program

 Formation of infrastructure of agrarian production by means of  loan for union of agricultural commodity producers

Target group

New and existing APC engaged in production, semifacturing, selling, processing, storing, transportation of agricultural products and supply with inventories

Designated purpose

- Fixed asset acquisition, including those for  modernization of the object;

- construction and installation work, including reconstruction;

- working capital financing.

Currency

Tenge

Loan amount

From 1 000 000 tenge to 25% of the net equity of the Corporation

Loan type

Loan/ credit line

Loan due date

Up to 120 months

Loan / tranche period

- Fixed asset acquisition  and construction and installation work – up to 120 months;

- working capital financing – up to 24 months.

Interest rate

14% annual interest (annual effective rate of return  –14% annual interest)

Payment pattern of principal debt

every month, quarterly, semi-annually, annually;

by the decision of Credit committee possible to create personalized amortization schedule due to activity type and business-plan with possibility of partial/full advanced repayment

Payment pattern of reward

every month, quarterly, semi-annually, annually;

by the decision of Credit committee possible to create personalized amortization schedule due to activity type and business-plan

Gestation period of payment of principal debt and reward

Up to 24 months

Charge

According to charge policy

Basic requirements for the potential members (for new created APC)

At least 2 (two) financially sustainable agricultural farms;

- absence of overdue payables on taxes and other

compulsory payments;

- absence of overdue debt to the regulated banks, other financial institutions;

- the absence of negative credit history;

- the absence of procedures for liquidation, bankruptcy.

Basic requirements for the existing APC

- absence of overdue payables on taxes and other

compulsory payments;

- absence of overdue payables, including the budget;

- absence of overdue debt to the regulated banks, other financial institutions;

- the absence of negative credit history;

- the absence of procedures for liquidation, bankruptcy;

- the solvency and financial stability.

Basic requirements for the project

- The availability of the raw material base of members, must provide at least 15% of the annual performance of the Association, according to the proposed activity;

- Co-financing of the Association members in the funded projects must be at least 15% of the requested amount of the project (own participation can be expressed both in material and in terms of money);

- The validity of the acquisition of equipment and technology, based on the availability of raw materials, production and sales;

- The availability of liquid collateral;

- Availability of markets;

- Availability of qualified experts with knowledge of the technological and production processes, the SEC proposed activity;

- Existence of a contract / agreement for the purchase of equipment, machinery and vehicles;

- Profitability and return on the project;

- Technological and technical feasibility of the project.