Frankfurt Am Main, November 6. Deputy Prime Minister Kanat Bozumbayev has completed the European roadshow of the city of Alatau City: meetings in London, Berlin and Frankfurt am Main produced a package of 27 commercial documents with a combined investment potential of more than $2 billion, the Government reported.
Alatau City is a city being built in the Almaty Region, with a special legal regime. In Frankfurt, the final stage, talks were held with banks, investment structures and companies: the round table considered financing infrastructure projects, attracting long-term capital and using German financial instruments. Alatau City Authority chief executive Alisher Abdykadyrov told participants about the city’s concept and the conditions for investors.
Agreements on bank financing of Alatau City projects were also signed there: they were concluded by Alatau City Authority, Alatau City Bank and the German financial institutions AKA Bank and KfW, Germany’s state development bank. The cooperation provides for financing investment projects and buying German equipment; the Government did not name any sums. Engineering and service infrastructure, production of medical devices, asset tokenisation and investment advisory were discussed with WILO, Zrinski Solutions, Myron AG, Nikolaus & Co. and Schneider Group.
The stage-by-stage total adds up as follows. The London round table on November 3 produced nine agreements with a potential of $1.3 billion, the organisers reported; more than 70 companies, funds and banks attended, among them JPMorgan Chase, AstraZeneca, BP and Brookfield Asset Management. The German stage, that is Berlin and Frankfurt, brought 18 agreements with a potential of $715 million: 11 in Berlin, which we reported on November 5, and another seven in Frankfurt (the editorial calculation from the Government’s figures). By comparison, the organisers put the Chinese stage, held in June in Shenzhen, Hong Kong and Macao, at a potential of up to $6 billion, Tengrinews wrote. The city’s investment portfolio is 67 projects worth about $6.9 billion and about 55,000 jobs, Bizmedia.kz noted.
What it means: The European series produced not money but a package of documents with a “potential”: in such reports this is the sum the parties hope to attract, not funds already invested. Of the foreign financial institutions, the announcement names KfW and AKA Bank; the Government did not say how much exactly they will provide.
Who benefits: Alatau City and its bank, which have gained access to German financing. German suppliers: by the Government’s description, the money is tied to purchasing German equipment. Who will invest, and how much, is not yet known.
Background: KfW is Germany’s state development bank, which lends to projects important for the country’s economy. Asset tokenisation is the conversion of rights to an asset into digital records, tokens, that can be traded. Investment potential is an estimate of the sum the participants hope to attract under signed agreements; it is not the same as actual investment.
We have also reported on how 11 agreements on Alatau City were signed in Berlin.
