AEQUITAS, as a Kazakhstan legal counsel, has advised international development banks on the USD585 million debt financing of the BAKAD project
On 6 August 2020, the BAKAD project successfully reached the financial close.
Over the past two years, AEQUITAS has acted as a local legal counsel advising international development banks on the BAKAD project finance and assisting to adapt the international project finance structure to Kazakhstan legal environment. Allen & Overy was a global legal counsel to the development banks.
“We are proud to have advised on this landmark project finance transaction. It was a real pleasure to work with big pros of the business,” shared their impressions Nurlan Sholanov, AEQUITAS Partner and Ardak Idayatova, AEQUITAS Senior Associate.
BAKAD is the first concession project of special significance in Kazakhstan involving construction and operation of a high-speed ring toll road. The project is being implemented under a 20-year build- transfer-operate (BTO) concession agreement entered into by the Republic of Kazakhstan and BAKAD Investment and Operation LLP established by Turkish sponsors Alarko and Makyol alongside Korean sponsors SK Engineering & Construction and Korea Expressway Corporation. The project is financed by the European Bank for Reconstruction and Development, Eurasian Development Bank, and Islamic Development Bank.
The BAKAD project is a true milestone in the Kazakhstan PPP market, being the first project finance concession involving a syndicate of international development banks and structured by reputable international advisors in accordance with best international practices. BAKAD is also the first PPP project structured under the new regulatory framework for such ventures in Kazakhstan.