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Program ‘Secondary Leasing'

Designated purpose

Agricultural machinery not requiring installation; special machinery; vehicles for transportation of agricultural and fish products, biological assets) put onto the Company's books due to termination of the primary financial leasing contract*

Equipment requiring/not requiring installation; machinery requiring installation) put onto the Company's books due to termination of the primary financial leasing contract

Maturity

up to 7 years

up to 12 years

First leasing payment

 

at least 12% of the value of subject of leasing

Collateral

not required

upon the decision by the Company's Credit Committee

Grace period for principal

 

 

not required

 

 

up to 2 years

Grace period for interest

Interest rate

 

 

Interest rate is fixed in accordance with the Special Terms of these Terms of Financing

Annual effective rate

Special terms

The following special terms for the secondary leasing are set in accordance with the Tax Code of the Republic of Kazakhstan:

  1. Making of the secondary financial leasing contract within the calendar quarter, when the primary financial leasing contract was terminated;

  2. Interest rate under the secondary leasing contract shall not exceed the interest rate under the primary leasing contract;

  3. The maturity for the secondary financial leasing contract shall be at least 3 (three) years.

Upon leasing of subjects of leasing put onto the books due to termination of the financial leasing contracts, the following interest rate is fixed:

- upon secondary leasing (in accordance with the Tax Code of the Republic of Kazakhstan): the interest rate is fixed as that on the primary financial leasing contract;

- upon financial leasing not complying with the ‘secondary leasing' criteria in accordance with the Tax Code of the Republic of Kazakhstan: the interest rate is fixed as that on the primary financial leasing contract without the indexation to the currency of the funds raised.

Principal and Interest Repayment Schedule

- principal repayment: at least 1 (one) time a year;

 

- interest repayment: at least 1 (one) time a quarter.

*Subjects of leasing under the Program ‘Secondary Leasing' may be obtained within ‘Master-leasing'. The service ‘Master-leasing' is an opportunity to open a leasing credit line for the agricultural sector entities and fixing the financing limit by means of leasing for 1 (one) year, within which the borrower may within 1 (one) year enter into the financial leasing contracts under the terms applicable at the date of contracts without recurrent provision of a full set of documents within 1 (one) year.

Approved by the Resolution of the Board of Directors of KazAgroFinance JSC No.6 dated 28.03.2018