23.11.10
The EBRD is supporting the further development of an efficient outdoor
advertising market in Kazakhstan, with a US$ 14 million (?10.7 million)
loan to RTS Decaux, a subsidiary of JCDecaux SA from France, and JSC
Lancaster Invest from Kazakhstan.
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
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