The Development Bank of Kazakhstan has signed a framework agreement with Banco Santander for up to €400 million to fund infrastructure and energy projects, following a year of significant borrowing totaling approximately $1.96 billion, primarily from Chinese banks before transitioning to European sources.
The Development Bank of Kazakhstan (DBK) has established a crucial financial partnership with Banco Santander, securing a framework agreement for up to €400 million (approximately $434 million) aimed at funding infrastructure and energy projects in Kazakhstan. This collaboration was confirmed during the 8th Kazakhstan-Spain Business Council meeting held in Madrid. Notably, within the past year, DBK has successfully borrowed around $1.96 billion from various international financial institutions.
Historically, Chinese banks served as DBK’s primary lenders until the fall of 2024, at which point the bank began diversifying its borrowing sources to include European institutions. In May 2023, DBK acquired a loan of $300 million from the China Development Bank (CDB). Subsequently, in July 2024, it entered into agreements with two Chinese lenders: a $250 million deal with the CDB, alongside another valued at $500 million with the China Construction Bank, facilitated by its Astana branch.
In its continued efforts to expand financial partnerships, DBK signed several agreements with German banks in September 2024. Deutsche Bank provided a sum of $200 million, while Landesbank Baden-Württemberg and KfW IPEX-Bank collectively contributed €200 million (approximately $217 million). Furthermore, DBK anticipates additional loans with the Italian development bank Cassa Depositi e Prestiti and the European Investment Bank later in October 2024 and March 2025, respectively.
The Development Bank of Kazakhstan’s recent agreement with Banco Santander underscores its proactive strategy in securing substantial financing for critical projects. Shifting from predominantly Chinese lenders to European institutions marks a significant evolution in its financial approach, enabling enhanced infrastructure and energy project development. This diversification in funding sources is indicative of Kazakhstan’s efforts to attract international investment and strengthen economic ties beyond its traditional partnerships.
Original Source: kz.kursiv.media
