EBRD Supports Araltuz’s Expansion with KZT 5.5 Billion Loan for Production Facility Upgrades

EBRD Supports Araltuz’s Expansion with KZT 5.5 Billion Loan for Production Facility Upgrades

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is aiding the growth of Araltuz, a prominent salt producer in Kazakhstan, by providing a convertible loan of up to KZT 5.5 billion. This funding will facilitate the modernization of Araltuz’s production facilities, particularly for the domestic manufacturing of vacuum salt. Additionally, the loan aims to diversify Araltuz’s export markets, targeting Europe, the Middle East, and China. The EBRD’s assistance will also encompass the implementation of a corporate governance action plan to enhance Araltuz’s operational efficiency and transparency. This investment underscores the EBRD’s ongoing commitment to supporting Kazakhstan’s economic development, marking a significant step in Araltuz’s journey towards expansion and diversification.

(PRESS RELEASE) LONDON, 16-Mar-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is supporting the expansion of Araltuz, a leading Kazakhstan-based producer of table and low-grade technical salt in Central Asia, by extending a convertible loan of up to KZT 5.5 billion (€11 million).

The funds will be provided to Salt Industry Ltd., a joint-stock company operating under the jurisdiction of the Astana International Financial Centre and a holding company of Araltuz. They will contribute to the company’s investment programme and support the construction of new manufacturing facilities to launch the domestic production of vacuum salt (also known as evaporated or culinary salt).

The EBRD loan will help Araltuz diversify the structure of its exports and expand to Europe, the Middle East and China.

As part of the project and with the EBRD assistance, Araltuz will also implement a corporate governance action plan.

With more than €10.1 billion invested in the country to date through 320 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.

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SOURCE: EBRD