Kazakhstan and Mongolia to create a private equity fund11 August 2008
State visit of the President of Republic of Kazakhstan in Mongolia on August 6-7, 2008 resulted in making decision on creation of the Кazakh-Mongolian private equity fund for deepening and expansion spheres of economic cooperation between business societies of Republic of Kazakhstan and Mongolia.
In organizational process of the Fund Kazakhstan will be represented by JSC " Kazyna Capital Management”, subsidiary of the JSC Fund of Steady Development “Kazyna”, from the Mongolian side by- the Ministry of industry and trade of Mongolia and Agency of the foreign investments and foreign trade of Mongolia. Total planned capitalization of fund will be US$100 mln. , with investment period of- 5 years and, 10 years term.
The purpose of the fund is financing profitable, and economically effective infrastructural and investment projects in as the following areas: energy, transport and logistics, financial services, telecommunications, tourism, food-processing, mining, production and processing of energy resources on the territory of Mongolia. Fund will be managed by the professional private equity fund management company.
The parties hope, that the fund will become the financial bridge between two countries - Kazakhstan and Mongolia, and will also allow further participation in financing large projects on the territory of Mongolia, directed toward development and integration of economies of two countries.
According to the Chairman of the board of KCM Аbay Alpamyssov, " the part of fund will be directed on financing of the investment projects of Bayan-Ulgii region, where there is a large Kazakh expatriate community live".
Bayan-Ulgii region is the part of the Western-Mongolian region. The basic branch of a national economy in this region is the cattle . breeding. Besides, according to the geological research data , the rich deposits of gold, silver and tungsten are found on its territory.