The Development Bank of Kazakhstan has secured a €400 million loan from Banco Santander for infrastructure projects, marking a shift towards European financing after previously relying primarily on Chinese banks. Over the past year, DBK has borrowed approximately $1.96 billion from various international lenders.
The Development Bank of Kazakhstan (DBK) has successfully entered into a framework agreement with Banco Santander, the foremost financial services group in Spain, to secure up to €400 million (over $434 million) for financing infrastructure and energy projects in Kazakhstan. This agreement was formalized during the 8th Kazakhstan-Spain Business Council meeting held in Madrid and underscores the bank’s continuous efforts to engage with international exporters.
In the past year, DBK has significantly increased its borrowing activities, securing approximately $1.96 billion from various international institutions. Historically, up until the fall of 2024, Chinese banks predominated as the bank’s primary lenders. For instance, in May 2023, DBK borrowed $300 million from the China Development Bank (CDB) and later entered into two additional agreements with Chinese banks.
These agreements included a $250 million and 2 billion yuan (approximately $276.5 million) loan from CDB, in addition to a $500 million loan agreement with the China Construction Bank, facilitated through its branch office in Astana. Furthermore, in September 2024, DBK expanded its funding sources by securing agreements with German banks, including a $200 million loan from Deutsche Bank and €200 million (around $217 million) from Landesbank Baden-Württemberg and KfW IPEX-Bank.
Moreover, towards the end of 2024 and into early 2025, DBK continued to diversify its funding by entering loan agreements with the Italian development bank Cassa Depositi e Prestiti as well as the European Investment Bank, thereby enhancing its financial capacity.
In summary, the Development Bank of Kazakhstan has positioned itself for substantial growth by securing a multi-million loan from Banco Santander to finance critical infrastructure and energy projects. This agreement is part of a broader strategy to diversify its funding sources, as evidenced by its recent borrowing from various international financial institutions, including banks from China, Germany, and Italy. DBK’s proactive approach is paving the way for enhanced investment in Kazakhstan’s economic development.
Original Source: kz.kursiv.media
