The European Bank for Reconstruction and Development (EBRD) and Shinhan Bank Kazakhstan (SBK) are helping to increase the capacity and attractiveness of Kazakhstan’s major conference hub, the Atakent Business Cooperation Centre in Almaty, by financing its expansion.
The EBRD will share half of the risk of a KZT 3 billion (US$ 6.6 million) loan provided by SBK, a fully owned subsidiary of Shinhan Bank Korea, to Atakent under the risk-sharing agreement between the two banks. The first risk-sharing transaction between the EBRD and SBK will finance the construction of a new sports and health facility, which will allow Central Asia’s leading conference hub to host national and international sports events.
The Dolphin sports complex will have a modern gym, various indoor and outdoor training facilities, two 25-metre swimming pools, as well as world-class arenas for a broad range of sport activities. It will be open to professional athletes and the general public.
The building – the construction of which is being supported by a US$ 172,200 grant under the EBRD’s Resource Efficiency Transformation Programme, funded by the Global Environment Facility Special Fund – will meet class A international energy efficiency standards. The grant will help introduce an array of energy-efficient solutions, including LED lighting, insulation, and modern heating and cooling equipment.
The EBRD has to date participated in 9 risk-sharing transactions in Kazakhstan worth a total KZT 7.4 billion (US$ 16.5 million). Risk-sharing facilities are part of the EBRD’s Small Business Initiative, which supports small and medium-sized enterprises (SMEs) and local firms and helps them to grow by facilitating access to finance and business advice. By sharing the risk with its partner banks, the EBRD boosts local banks’ ability to lend to SMEs, which often have difficulty accessing tailored finance. The framework also helps participating banks to enhance their risk-taking capacity, receive capital relief and improve their risk management.
With more than €10 billion invested in the country to date through 317 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.
