SMBC Guarantees Damu Fund’s Preferential Loan

News
16.02.2021

SMBC Guarantees Damu Fund’s Preferential Loan

The guarantee issued by Japanese bank is worth KZT5 billion

 

Toyota Financial Services Kazakhstan Microfinance Organization (Toyota Finance) started utilizing KZT1.5 billion of third tranche of KZT5 billion preferential loan issued within Damu-Micro Program by ‘Damu’ Entrepreneurship Development Fund JSC, a subsidiary of ‘Baiterek’ National Managing Holding. Brussels office of Sumitomo Mitsui Banking Corporation, one of the largest Japanese lenders, issued a guarantee on behalf of Toyota Finance to cover the increased limit of the loan from Damu. Kazakhstan’s Halyk Bank verified the authenticity of the guarantee.   

 

In 2020 Toyota Finance utilized KZT2 billion, and as of 1 February 2021 the microfinance organization financed 247 micro and small enterprises for total amount of KZT3.1 billion.

 

“We conclude international deals to ensure sustainable development of our company and provide a wide range of services to our clients. Working with Japanese Sumitomo Mitsui Banking Corporation Brussel Branch shows our commitment to make products affordable for Kazakhstani microbusinesses”, - said Zhenisbek Dossymkhanov, President of Toyota Financial Services Kazakhstan.

 

“Damu strives to work actively with microfinance organizations. It is relevant for us to contribute to their sustainability, provide equity support and facilitate development, for the benefit of micro and small businesses. We appreciate the willingness to provide access to finance for Kazakhstani microbusiness”, - noted Gaukhar Buribayeva, Chairperson of ‘Damu’ Fund.

 

For reference:

 

Sumitomo Mitsui Banking Corporation (SMBC), with ‘A1’ credit rating affirmed by Moody’s, and ‘A’ issuer rating confirmed by both S&P and Fitch, was established in 2001 as Sumitomo and Mitsui banks with more than four centuries history merged. SMBC is the core unit of Sumitomo Mitsui Financial Group (SMFG), a banking holding company with headquarters in Tokyo, Japan. SMFG holding is ranked among the largest 25 banks globally by assets under management.

 

SMBC Group operates in 20 cities of Europe, Middle East and Africa, including the regional head office in London, UK. Corporation’s branch in Brussels participated in the aforementioned deal with Kazakhstan.

 

Toyota Financial Services Kazakhstan (Toyota Finance) is a financial subsidiary of Toyota Motor Corporation automotive manufacturer.

 

Damu-Micro Program is a financial product of ‘Damu’ Entrepreneurship Development Fund (a subsidiary of ‘Baiterek’ National Managing Holding) created to finance microfinance organizations for further lending to micro and small private enterprises in Kazakhstan.