Efes Karaganda Brewery CJSC

MIGA has provided $7.2 million in guarantees to Efes Breweries International B.V. (EBI) of the Netherlands two guarantees for its $4.5 million equity investment in, and $3.5 million loan guaranty to, Efes Karaganda Brewery CJSC (EKB) in Kazakhstan. The guarantee period is for up to ten years for the equity, and up to 3 years for the loan guaranty. The coverages are against the risks of transfer restriction, expropriation, and war and civil disturbance.

This project involves the construction and operation of a new brewery with an annual capacity of 50 million liters, near Almaty, and is anticipated to have a strong positive developmental impact. This investment expects to generate about 220 permanent jobs, and up to an additional 150 jobs during the project construction. The project enterprise will contribute to good and safe working conditions and will provide a number of additional benefits to its employees, including free medical examinations through a local hospital contracted by EKB. It is estimated that local suppliers of goods and services and distributors of EKBs products will employ a further 2,000 people. Staff will be trained in all aspects of production and bottling operations, including modern manufacturing techniques, sales, management, distribution and safety procedures. It is estimated that the company will generate incremental tax revenues to the government, including value-added and excise taxes, of almost $5 million annually. Moreover, the increased local production of a high-quality beer will replace a significant amount of imported beer. Local procurement is expected to be $5.7 million per year, generating additional taxes from upstream businesses.

Note: the contract of guarantee for $3.15 million has expired.