Development Bank of Kazakhstan and Japan's JBIC to finance projects worth $200 mln

ASTANA. Aug 9 (Interfax) - Japan Bank for International Cooperation (JBIC) and Development Bank of Kazakhstan JSC (DBK) intend to sign an agreement on financing joint projects worth $200 million, the press service of Kazakhstan's government said.

Prime Minister of Kazakhstan Olzhas Bektenov held in Astana a meeting with JBIC governor Hayashi Nobumitsu to discuss joint projects.

The DBK and JBIC plan to seal an agreement of intent to finance joint projects in energy (including renewable energy sources), transport, mechanical engineering, food production and other priority sectors for a total value of $200 million, the press release says.

Nobumitsu said that JBIC was interested in joint projects with Kazakhstan in green financing and transit financing according to the ESG standards.

JBIC has already financed 26 projects worth $2.3 billion in Kazakhstan in such areas as energy and water supply, mining, transport and logistics, according to the press service.

Japan is one of Kazakhstan's key partners in East Asia and is currently among the top 10 largest investors. In 2023, trade between Kazakhstan and Japan increased by 10.5% to reach $2.1 billion. In January-May 2024, trade between the two countries totaled $768 million.

Development Bank of Kazakhstan (DBK) was organized in 2001. The bank finances medium- and long-term investment projects in infrastructure and non-resource sectors and attracts external and internal investment in the republic. DBK is part of National Managing Holding Company Baiterek, which was created in May 2013 to manage the stakes in the national institutes of development, the national companies and other legal entities. Baiterek either owns such stakes or manages them on behalf of the other stakeholders.