Kazakhstan’s DBK borrows from Europe to promote energy and transportation

The Development Bank of Kazakhstan (DBK), a subsidiary of Baiterek Holding, has borrowed €200 million from the European Investment Bank (EIB). This money will be spent on the support of energy and transport infrastructure, as reported by the Kazakhstan Stock Exchange (KASE).

Over the past year, the DBK has already borrowed about $1.4 billion.

«These funds will be allocated for the improvement of the transportation network, implementation of the Trans-Caspian International Route, as well as the development of projects in the field of renewable energy sources and the fight against climate change,» the DBK said.

According to Vice President of the EIB Kyriacos Kakouris, the loan will streamline the country’s transition to a more diversified and sustainable economic model, decrease the consequences of climate change, reduce dependence on fossil energy and cut greenhouse gas emissions.

Over the past year, the DBK has taken various loans from different international financial organizations. Before the fall of 2024, it had been borrowing primarily from Chinese banks. However, it shifted its focus toward European creditors.

In May 2023, the DBK reported taking a $300 million loan from the China Development Bank (CDB). In July 2024, Kazakhstan’s bank signed two more agreements with Chinese institutions. One of them was about a $250 million loan (plus 2 billion renminbi) from the CDB. The other one was a $500 million loan from the Astana branch office of the China Construction Bank.

In September 2024, the DBK entered into agreements with Deutsche Bank ($200 million loan), Landesbank Baden-Württemberg and KFW IPEX Bank (another €200 million). The same sum – €200 million – was also secured from Cassa Depositi e Prestiti, the development institution in Italy.