5.5 billion tenge loan granted to Kazakh salt producer by EBRD

JSC Araltuz planning to build new production facilities and diversify exports

Araltuz is leading producer of table and industrial salt in Central Asia.

  • EBRD grants loan of 5.5 billion tenge to Salt Industry Ltd.
  • Convertible loan will be used by Araltuz JSC to increase production capacity.
  • Leading salt producer to diversify exports and improve corporate governance

European Bank for Reconstruction and Development (EBRD) is supporting the expansion of JSC Araltuz, Kazakhstan’s leading producer of table and technical salt in Central Asia, by providing a convertible loan of up to 5.5 billion tenge (11 million euros).

The funds are being provided to the joint stock company Salt Industry Ltd., the holding company of JSC Araltuz, operating under the jurisdiction of Astana International Financial Center. The funds will be used to support a project to build a salt evaporation plant to launch domestic production of high-quality vacuum salt (known as “Extra” salt).

EBRD loan will help Araltuz JSC to diversify its export structure and expand its activities in Europe, the Middle East and China. With the assistance of EBRD, an action plan to improve the corporate governance of Araltuz JSC will also be implemented.

As part of the loan agreement between the EBRD and Araltuz JSC, a tripartite memorandum of cooperation was also signed between the Mayors Office of the Kyzylorda region represented by the Deputy mayor of the region Ardak Zebeshev, Araltuz JSC represented by the chairman of the board of directors Dauren Mukashev and the EBRD represented by the director of the agribusiness department Natalya Zhukova . The signing of the memorandum will help strengthen partnerships between the parties, introduce new social and environmental standards in the region, as well as promote the socio-economic development of the Aral region of the Kyzylorda region. To date, the EBRD has invested more than €10.1 billion in the country through 320 projects. Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.