AKIPRESS.COM - Eurasian Development Bank (EDB) and RG Brands Kazakhstan (RG BK) signed a loan agreement on May 29 to finance the development of RG Brands Group (comprising the borrower, RG Brands Kazakhstan), the EDB said.

The document was signed by Murat Alkenov, Executive Project Director at EDB, and Alibek Ungarbayev, Financial Director at RG BK.

In accordance with the agreement, EDB will provide RUB 1.27 billion for three years. The loan will help to increase the company’s exports to neighbouring countries. It is envisioned that the main sales will be in Russia and Kazakhstan.

”This project is peculiar in that this is the first transaction with insurance coverage. Insurance is provided by KazakhExport, an export credit agency. It is also important to us that we cooperate with Kazakhstan’s leading food producer, RG BK,” says Murat Alkenov. “The project has an integration component and this makes it concordant with EDB’s strategy. In particular, it will promote mutual trade between the Bank’s member countries: exports to neighbouring countries are expected to comprise over 25% of the company’s sales.”

“The finance we receive from EDB will help RG Brands Kazakhstan to enhance exports within three years,” Alibek Ungarbayev comments.