Astana International Financial Centre and «Samruk-Kazyna» JSC sign Memorandum of Understanding
Memorandum of Understanding between Astana International Financial Centre (hereinafter«AIFC») and «Samruk-Kazyna» (the Fund) has been signed today within the framework of the Joint Action Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan on the creation and development of the Astana International Financial Centreapproved by Government Resolution #393 dated 30th of May 2015 (amended and supplemented as of September 8, 2016, Resolution #530).
The Memorandum envisages the coordination of the roadmap for conducting IPO of the Fund’s companies in accordance with the implementation of the Comprehensive privatization plan for 2016-2020.
It is to be noted that plans are drawn conduct IPO of the financially attractive companies as part of divestment.
According to the Head of the AIFC K. Kelimbetov, AIFC will play an important role in the implementation of the privatization program through creation of a developed financial infrastructure, as well as through the development of regulatory frameworks to attract foreign investors.
The CEO of «Samruk-Kazyna» JSC U. Shukeyev noted that the cooperation with AIFC is important for the Fund as it will works towards development of Kazakhstan's capital markets and open up new opportunities to attract investment for the quasi-public sector companies.
According to the parties, cooperation between AIFC and the Fund in the framework of the signed document will consolidate liquidity and create a deep capital market based on the new exchange infrastructure, and will also contribute to the development of the local capital market and the inflow of foreign investments in Kazakhstan.
In December 2015, President of the Republic of Kazakhstan Nursultan Nazarbayev signed a law “On the Astana International Financial Centre” (AIFC). The aim of AIFC is to create a leading international centre of financial services in Kazakhstan. For the first time in post-Soviet region, Common law framework will be introduced in the workings of AIFC. The official language ofAIFCwill be English.
The objectives of AIFC are to attract investment into the economy through the establishment of an attractive environment for investment in the financial services, develop local capital markets, and to ensure their integration with the international capital markets. AIFC intends to develop markets for insurance and banking services and for Islamic financing in the Republic of Kazakhstan.
Sovereign Wealth Fund «Samruk-Kazyna» JSC is a national investment fund whose sole shareholder is the Government of the Republic of Kazakhstan. The Fund was established in accordance with the Decree of the President of the Republic of Kazakhstan in 2008.
The Fund represents itself as commercial structure, the investment holding company, and its mission is to increase the national welfare of the Republic of Kazakhstan by supporting the modernization of economy. The Fund «Samruk-Kazyna» achieves its mission through efficient management of its portfolio companies in order to increase their long-term value and ensure sustainable development by making catalytic investments in the priority sectors of the national economy. The Fund's assets amount to US$ 61.5 billion to date. The Fund’s group of companies contributes around a quarter of all investments in Kazakhstan. «Samruk-Kazyna» group of companies includes enterprises of oil and gas, transport and logistics, chemical and nuclear industry, mining and metallurgical complex, energy, engineering and real estate among others.
In accordance with the decree of the President of Kazakhstan, «Samruk-Kazyna» JSC carries out an ambitious program of privatization from 2016 to 2020. The main objective of this program is to increase the efficiency of the economy of Kazakhstan, through the transfer of state assets in a competitive environment.