The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Project finance takes shape in Kazakhstan

The central Asian republic may still be developing suitable funding channels, but a pick-up in deals is expected, given an economy that continues to grow and an appropriate legal framework. Patrick Gill reports.

By Patrick Gill

PROJECT FINANCE IN the strict sense of the term has not yet developed in Kazakhstan but this is expected to change as the market grows. Despite the lack of pure project finance, with the establishment of a special purpose vehicle, companies have no shortage of financing options for their investment needs. Bank loans, bond issues and initial public offerings are tried and tested ways of raising capital that have served Kazakh companies well. Part of the reason why project finance has not taken off is that the Kazakh banking sector is well enough developed to offer cheaper alternatives. With a diversifying economy and an improving legal framework, there is the potential for larger-scale, classic project financing, bankers say.

“We have seen very little true project financing, where the financing structure was based on the performance of the project itself,” says Jurgen Rigterink, head of ABN Amro in Kazakhstan. “But this is changing now. ABN is currently analysing a couple of large deals of over $1 billion relying on the fundamentals themselves, instead of having a guarantee from a sponsor. This will develop further this year. Furthermore, we expect a significant increase in public-private partnerships, particularly related to improving the country’s infrastructure.”

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree