Development Bank of Kazakhstan JSC (a subsidiary of «Baiterek» NMH» JSC) has signed agreements with leading Chinese financial institutions to attract long–term financial resources for the implementation of investment projects in the field of agriculture, infrastructure, manufacturing and green energy.
The signing of the documents took place on the sidelines of the Kazakhstan-China Business Council in Astana, held in the run-up to the Shanghai Cooperation Organization summit, where Kazakhstan is the chairing country this year.
The strategic cooperation agreement with the Astana branch of China Construction Bank provides for the DBK to receive credit funds amounting to USD 500 million, which will be directed towards financing investment projects.
The framework agreement with the China Development Bank provides for the DBK to receive a soft loans of USD 250 million and CNY 2 billion, which will be allocated to finance several investment projects. One of these projects involves the restoration of republican highways with a total length of more than 5,000 kilometers. This project will be implemented throughout Kazakhstan and will enhance the transport and logistics potential of the regions. For these purposes, DBK has opened a credit line to «KazAvtoZhol» NC JSC equivalent to KZT 450 billion.
Additionally, an agreement of intent to provide a syndicated loan for the construction of a wind farm with a total capacity of 220 MW in the Akmola region was signed between the DBK, «China Power International Holding», and Industrial and Commercial Bank of China in Almaty JSC. Besides the aforementioned participants, the Asian Infrastructure Investment Bank is also expected to participate in the syndicate. This investment project involves the construction of five wind power plants: Borei WPP (100 MW), Energo Trust WPP (50 MW), Sofiyevskaya WPP (39 MW), Arkalyk WPP (17 MW), and Jasil Jel Energy WPP (14.95 MW), which will provide the region with environmentally friendly electricity and reduce harmful emissions into the atmosphere. Overall, this project aligns with Kazakhstan’s plans to increase the share of renewable and alternative energy sources to 80% of the country's total energy balance by 2060.
Another important document is the memorandum of cooperation between the DBK, Shijixianghe Asia Pte. Ltd., and LLP Grain Consortium of Kazakhstan, which envisages the implementation of an investment project for the deep complex processing of wheat with a capacity of 1 million tons per year. This project aims to produce high-value products with the potential for export to international markets.
«These agreements expand business cooperation between Kazakhstan and China, create opportunities for the implementation of strategically important projects in our country, and enhance Kazakhstan's investment attractiveness. We are confident that our cooperation with partners from China will bring significant benefits to both countries. It is important for us that investments are directed to such crucial sectors as the food industry and alternative energy», said Marat Yelibayev, head of DBK.
