The 10-year loan with a four-year grace period will be used to finance the company’s development of a network of bus shelters and related street infrastructure including benches, information panels, billboards and city lights in Kazakhstan’s two largest cities of Astana and Almaty.

The EBRD is providing continuing support to a leading company in the outdoor advertising segment. The Bank's support is aimed at fostering the evolution of the advertising market and further development of country-wide commerce and trade in Kazakhstan.

“Advertising promotes competition, provides access to information, and is a key element of any modern economy. The downturn has temporarily reduced the advertising volumes, but they will bounce back as the recovery gathers pace in Kazakhstan. Improving the outdoor advertising infrastructure will both provide an immediate economic boost and help to make the advertising market more vigorous,” said Michael Weinstein, EBRD Director for Kazakhstan.

Bus shelters represent nearly 15 per cent of the total number of outdoor advertising facilities. In 2009, RTS Decaux owned and operated approximately 50 per cent of the existing bus shelters in Kazakhstan and generated approximately 60 per cent of the related advertising revenues in the street furniture segment.  

“This is our second project with the EBRD. The new funds will enable our company to expand further and to improve services to the cities, brands and inhabitants. The backlight street furniture equipment that we intend to install will contribute to the beautification of the urban landscape,” commented Arman Kagarov, President of RTS Decaux.

The EBRD’s current investment strategy for Kazakhstan has an immediate focus on supporting the corporate sector, addressing financing requirements arising from the economic crisis while also promoting economic diversification and innovation.

The Bank is also working with authorities and other international financial institutions to strengthen the country’s financial sector. The banking sector remains the key conduit for EBRD financing for small enterprises.

Since the beginning of its operations in Kazakhstan, the EBRD has invested over ?2.8 billion in over 130 projects in various sectors of the Kazakh economy, mobilising additional investments in excess of about ?7 billion, with 65 per cent of the projects’ being investments into the development of the country’s private sector.

Author: Sergiy Grytsenko on www.ebrd.com

Successful completion of the deal on GMedia project has allowed National Innovation Fund of Kazakhstan to exit from Advant venture fund with profit of about 50 mln tenge. GMedia is one of the three projects financed by Advant venture fund, which secured high profit with 35% return on investment. It has also recovered shareholders investment in all three projects.

“This is the first example of successful from start to finish classic ‘exit’ from a venture fund in Kazakhstan”, said Chairman of board of JSC National Innovation Fund, Aidyn Kulseitov.