Development Bank of Kazakhstan Secures Significant Loan from Banco Santander
The Development Bank of Kazakhstan has secured a framework agreement with Banco Santander for up to €400 million in funding for infrastructure and energy projects. Over the past year, DBK has borrowed approximately $1.96 billion from various international banks, shifting from Chinese to European lenders as its primary source of finance. This strategic transition is aimed at diversifying funding for growth in Kazakhstan.
The Development Bank of Kazakhstan (DBK) has recently secured a substantial loan framework agreement with Banco Santander, Spain’s premier financial services institution. This agreement aims to attract financing of up to €400 million (approximately $434 million) specifically designated for infrastructure and energy initiatives within Kazakhstan, with the involvement of international exporters. The ceremonial signing occurred during the 8th Kazakhstan-Spain Business Council meeting held in Madrid.
Over the past year, DBK has strategically engaged with various international lenders, accumulating around $1.96 billion in funds. Initially, from now until the autumn of 2024, Chinese banks served as the principal financiers, but DBK has transitioned its focus towards European financial institutions. Notably, in May 2023, DBK successfully secured a loan of $300 million from the China Development Bank before entering into additional financing agreements with two Chinese banks in July 2024.
These agreements included a significant $250 million loan from the China Development Bank and another financing deal valued at $500 million with the China Construction Bank through its Astana branch. Furthermore, in September 2024, DBK enhanced its financial capacity by signing important agreements with German financial institutions, such as a $200 million loan from Deutsche Bank, alongside €200 million allocated from Landesbank Baden-Württemberg and KfW IPEX-Bank. DBK then continued to establish partnerships with Italian and European banks in late 2024 and early 2025, thereby solidifying its financial strategies.
In conclusion, the Development Bank of Kazakhstan has made noteworthy strides in securing funding to support its infrastructure and energy projects. With the establishment of a €400 million loan agreement with Banco Santander and prior financing arrangements with several international banks, DBK demonstrates a robust strategy to diversify its funding sources beyond its initial reliance on Chinese banks. This initiative highlights the bank’s commitment to fostering economic development in Kazakhstan through enhanced financial partnerships.
Original Source: kz.kursiv.media
