Standard Chartered has announced the successful signing of a USD 785 million financing facility for the Development Bank of Kazakhstan (DBK) to support regular road maintenance and medium repair works across Kazakhstan. This financing is part of the Government’s National Road Rehabilitation and Repair investment project (the Programme), launched in 2024 and targeting completion by 2028.

Desislava Radeva, Executive Director, Development & Agency Finance at Standard Chartered, said, “Reliable transport infrastructure is fundamental to economic development, trade, and regional connectivity. We are proud to support Kazakhstan’s ambitious road rehabilitation programme through a financing structure that brings together international capital, multilateral support, and local development priorities.”

“This transaction highlights the role Standard Chartered can play in helping governments and state-owned entities deliver infrastructure that drives long-term economic value and benefits communities at scale.”

A glance at the financing structure

The facility enables DBK to on-lend proceeds to Joint Stock Company National Company KazAvtoZhol (KAZh), Kazakhstan’s national road operator, for the rehabilitation and repair of approximately 7,700 kilometres of public republican roads nationwide.

Standard Chartered served as Mandated Lead Arranger, Original Lender, Bookrunner, Facility Agent, and Account Bank.

J.P. Morgan served as the Lender, Mandated Lead Arranger, and Bookrunner for the transaction, with Commerzbank AG also acting as Mandated Lead Arranger and Lender.

The financing benefits from support by the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group Guarantee Platform, which provides two Non-Honouring of Financial Obligations by a State-Owned Enterprise guarantees. MIGA’s coverage helps mobilise long-term international capital for this strategically important infrastructure programme.

Tsutomu Yamamoto, Managing Director of MIGA, said, “We’re proud to support the creation of thousands of jobs and the improved connectivity that rehabilitating these roads will deliver for people across Kazakhstan. This is the largest MIGA transaction in Central Asia to date and continues the World Bank Group’s work to strengthen Kazakhstan’s transport sector, which includes our support for the development of the Middle Corridor.”

The funds will refinance KAZh’s current debts and support future drawdowns for ongoing maintenance and repairs.

Eligible works include pavement rehabilitation, remediation of surface deformations, frost heave repairs, and replacement of road signage to enhance road quality and safety.

Marat Yelibayev, CEO of DBK, said,“This milestone transaction, the first for DBK to benefit from MIGA guarantees, reflects international investors’ confidence in Kazakhstan and demonstrates the strength of DBK’s collaboration with Standard Chartered, J.P. Morgan, and Commerzbank.”

“By expanding access to long-term international capital, this partnership will support strategic projects improving transport infrastructure, strengthening the country’s transit potential, and supporting long-term economic growth.”

Addressing Kazakhstan’s transportation challenges

Kazakhstan faces transportation challenges due to ageing and deteriorating road infrastructure.

The National Road Rehabilitation and Repair project would improve road conditions, enhance safety, reduce travel times, and boost domestic and international connectivity.

Upon completion, the rehabilitation works are expected to deliver substantial benefits for road users, businesses, and local communities.

This would include improved road safety and driving conditions, reduced journey times, enhanced connectivity, lower vehicle operating and transport costs, greater access to economic opportunities across Kazakhstan, and strengthened regional and international trade corridors

The rehabilitated roads connect key economic centres, industrial hubs, and tourist destinations. Several sections form part of major international transport routes linking Kazakhstan with neighbouring countries.

The Programme is also anticipated to support employment during implementation and stimulate broader economic activity along the rehabilitated corridors.

This transaction is also another milestone in Standard Chartered’s growing presence in Kazakhstan and the wider Commonwealth of Independent States (CIS) region, supporting the Bank’s Network, Products, and Coverage strategy. It builds on the Bank’s track record of delivering complex financings alongside multilateral development institutions and export credit agencies across Central Asia.

Standard Chartered has successfully closed several MIGA-supported transactions, most recently for the rehabilitation and modernisation of Kazakhstan’s rail network.