Financing of integrated development projects

Financing of urban development investment projects and financing of integrated development of territories in order to develop standards for integrated development of territories.

Who can receive the service

Legal entities (developers and authorized companies) engaged in the construction of a complex development project on the territory of the Republic of Kazakhstan.

Authorized companies act as the main borrower, and developers act as a co-borrower. Other persons may participate in the implementation of the project, who may act as pledgers and/or guarantors.

Intended use

Financing of urban development investment projects is carried out in accordance with their Standard of integrated development of territories* for the following purposes:

• construction of facilities on the territory of complex development according to design and estimate documentation on the territory of the Republic of Kazakhstan (including construction and installation works, author’s and technical supervision) and in accordance with the approved detailed planning plan;
• construction of facilities on the territory of complex development in accordance with the Standard of complex development of territories.

*The standard of integrated development of territories is a methodological document “The standard of integrated development of territories (including criteria for evaluating housing construction)”, approved by the decision of the Board of the Joint Stock Company “Kazakhstan Housing Company” dated February 24, 2022 (Protocol No. 14).

The term of financing (crediting) is established by the authorized body of the Unified Operator in accordance with internal regulatory documents.

The remuneration rate (including mixed) is determined by the decision of the authorized body of the Single Operator in accordance with an internal regulatory document providing for the procedure for calculating the cost of products of the Single Operator.

An urban development investment project of a complex development can be carried out by the developer and his authorized companies.

A single operator finances authorized companies that act as the main borrower. The developer acts as a co-borrower. Other persons may participate in the implementation of the project, who may act as pledgers and/or guarantors.

Definitions and roles of project participants:

• Unified Housing Construction Operator (Unified Operator) – Joint Stock Company “Kazakhstan Housing Company”/Company;
• A developer is a legal entity engaged in the organization of housing construction of apartment buildings at the expense of its own and (or) attracted money through participation in the authorized capital of an authorized company;
• An authorized company is a legal entity, one hundred percent of the voting shares (shares in the authorized capital) of which belong to a developer, engaged in the construction of an apartment building, and in the case of involvement of shareholders, engaged in activities to ensure the shared construction of an apartment building and the sale of shares in an apartment building and complies with the requirements of the legislation of the Republic of Kazakhstan on equity participation in housing construction;
• The Agreement on the opening of a credit line (hereinafter referred to as the Agreement) is an agreement between the Company and the borrower/co–borrower/mortgagor/guarantor on the provision of a credit line to the latter on terms that allow the borrower/co–borrower to determine the time and amount of obtaining a loan, but within the limits set in the agreement;
• A loan agreement is an agreement of a prescribed form concluded between the Company and the borrower/co–borrower/mortgagor/guarantor, regulating the terms and procedure for granting and repayment of a loan within the framework of the Loan Agreement;
• The borrower is an authorized company that receives a loan as part of financing by a Single Project Operator;
• A co–borrower is a developer who signs a joint loan agreement / pledge agreement with the borrower, and acts under the agreement as a joint debtor for fulfilling obligations to repay the loan received and full payment of the funds received, including remuneration and other loan payments. It is allowed to involve as a co-borrower another legal entity or individual who meets the requirements of the internal regulatory documents of the Unified Operator;
• The pledgor is an authorized company and (or) the developer, as well as any natural or legal person who signs a joint loan agreement/pledge agreement together with the borrower/co–borrower and provides collateral for property/property rights to ensure the fulfillment of the obligations of the borrower/co-borrower under the joint loan agreement;
• The guarantor is a legal entity and (or) an individual who signs a loan agreement /pledge agreement together with the borrower/co–borrower, and guarantees the fulfillment of obligations to repay the money received and full payment of the loan/ loan received, including remuneration and other loan payments.