A co-investment agreement to finance the development and international expansion of Kazakhstani and French companies

Samruk-Kazyna and Bpifrance recently launched a co-investment platform dedicated to Kazakhstani and French companies.

At the end of October 2020, the sovereign wealth fund of Kazakhstan, Samruk-Kazyna, and the French public investment bank, Bpifrance, announced the launch of a 100 million euros co-investment partnership to commit to the development of trade between the two countries. 

A co-investment agreement made for SMEs and intermediate-sized companies

The agreement is dedicated to Kazakhstani, French, or joint-venture SMEs, and intermediate-sized companies (ETI) operating in industry, agriculture, ecological and energy transition, education and health. Both partners will invest €10 to €40 million in tickets, and offer their expertise and network to support the development of portfolio companies in Kazakhstan, in France and in Central Asia. Some investment opportunities may be chosen and proposed to strategic sovereign wealth fund partners with Samruk-Kazyna and Bpifrance for co-investment purposes. 

“This new co-investment platform with Samruk-Kazyna will allow us to jointly support French companies looking to seize the many opportunities offered by Kazakhstan and Central Asia.” said Pascal Lagarde, Executive director in charge of international affairs at Bpifrance. “[…] We are determined to continue developing our relations with foreign sovereign wealth funds in order to create long-term and international trade and economic ties.” 

 

A co-investment agreement to bolster economic relations between Kazakhstan and France

Indeed, this partnership is part of Bpifrance’s mission to tie long-term partnership relations with foreign sovereign wealth funds in order to carry out co-investment operations in France and abroad. On the other side, Samruk-Kazyna is a sovereign wealth fund owned by the Government of the Republic of Kazakhstan. Established in 2008, its main mission is to increase the national welfare of the Republic of Kazakhstan and to ensure long-term sustainability to future generations. 

Yerzhan Tutkushev, Managing Director for Logistics and International cooperation – Member of the Management Board at Samruk-Kazyna, stated: “Samruk-Kazyna welcomes the development of partnership with Bpifrance in the form of co-investment platform. Being a sovereign wealth fund of Kazakhstan, we are now embarking on a new stage of development – a transformation into the investment holding. Partnership with Bpifrance will help us to attract the best international practices in order to transform our long-term vision into reality. We are interested in a long-term relationship through co-investments with a long investment horizon in different opportunities in Kazakhstan and on international markets.” 

This co-investment agreement will eventually contribute to further develop economic relations between both countries.