Kazakh developer Chagala has agreed a $53.5m (£27.4m) credit facility with two European banks aimed at financing the development of its schemes in the west of Kazakhstan.

The London Stock Exchange listed company, led by chief executive Tim Abson, has agreed the credit facility with HSBC Bank Kazakhstan and Austrian bank Raiffeisen Zentralbank Osterreich.

Development funding

The finance will be used alongside the company’s own resources to fund the development of seven of its developments, including a commercial scheme in Bautino, an apartment and office building in Atyrau and an apartment led scheme at Aktau.

The facility, which is repayble over seven years, will also be used to extend and refurbish Chagala’s existing developments in Aksai and Uralsk.

Abson said: ‘The new financing will enable the company to proceed more quickly with plans for new and committed developments, expansion and refurbishment. This will ensure that Chagala continues to meet the increasing demand for quality living accommodation, office and recreational facilities in Western Kazakhstan.’