By Jason Corcoran
Kazyna Capital Management, the private equity arm of Kazakhstan’s sovereign wealth fund, is combining with the European Bank for Reconstruction and Development (EBRD) to set up a $300m vehicle to invest in distressed companies.
The fund will focus on financing of companies experiencing problems with repaying their debt. Its main task will be debt restructuring and financial support.
The fund will not limit its activities only within Kazakhstan but will actively look at investment opportunities abroad. It also plans to invest in companies from across almost all sectors of the economy.
Speaking at a forum in Almaty, the chairman of Kazyna Alpamys Abay, said “We have a lot of stable companies under the yoke of debt that are experiencing problems. With the creation of fund, there is an opportunity to change their debt issues.”
Abay said Kazyna also plans to raise funds with the World Bank and Asian Development Bank.
The company said it will will hire up to 15 specialists to run the fund.
Kazyna Capital Management,was launched in May 2007 to develop the non-resource sectors of the Kazakh economy and bring in foreign investment, as well as to bu international assets. It has previously co-invested with the EBRD through the Kazakhstan Growth Fund set up last year.