Development Bank of Kazakhstan Secures €400 Million Loan from Banco Santander

The Development Bank of Kazakhstan has secured a €400 million loan from Banco Santander for energy and infrastructure projects. Total borrowings in the past year reached approximately $1.96 billion, mainly from international lenders. DBK has transitioned from Chinese banks to European sources, strengthening its financial partnerships.

The Development Bank of Kazakhstan (DBK) has recently entered into a framework agreement with Banco Santander, the largest financial services group in Spain, to secure financing for up to €400 million (approximately $434 million) targeting infrastructure and energy projects in Kazakhstan. This agreement was formalized during the 8th Kazakhstan-Spain Business Council meeting held in Madrid. Over the past year, DBK has obtained about $1.96 billion in borrowings from various international financial institutions.

Historically, Chinese banks were the primary lenders for DBK until the fall of 2024 when there was a strategic shift toward European financiers. Noteworthy transactions included a $300 million loan from the China Development Bank (CDB) in May 2023 and further arrangements with two Chinese financial institutions in July 2024. These included a $250 million deal and another worth $500 million with the China Construction Bank’s Astana branch.

In a notable development in September 2024, DBK expanded its international partnerships by securing loans with German banks. Deutsche Bank provided a loan amounting to $200 million, while Landesbank Baden-Württemberg and KfW IPEX-Bank contributed a combined total of €200 million (approximately $217 million). Furthermore, additional agreements with the Italian development bank Cassa Depositi e Prestiti and the European Investment Bank are anticipated in October 2024 and March 2025, respectively.

The Development Bank of Kazakhstan’s recent loan agreement with Banco Santander marks a significant step in diversifying its funding sources, transitioning from predominantly Chinese lenders to European financial institutions. This strategy will support critical infrastructure and energy projects in Kazakhstan, bolstering economic growth. With previous loans already in place from various global banks, DBK’s commitment to engaging international financial partners appears robust and strategically sound.

Original Source: kz.kursiv.media