Baiterek Holding and Citigroup Inc. explore potential cooperation

Chairman of the Management Board of Baiterek Holding, Rustam Karagoishin, recently conducted a meeting with representatives from Citigroup Inc. The meeting centered on Baiterek Holding's plans to enter the international capital markets, funding needs for the near future, and potential cooperation opportunities between the two organizations.

The meeting focused on the current state and future development of Citigroup in Kazakhstan and Central Asia. Participants also explored potential areas for collaboration, such as investment projects and initiatives aimed at boosting the economy of Kazakhstan and the region.

“We are excited about the collaboration with Citigroup, as it has the potential to significantly boost the economy of Kazakhstan. Our partnership has the power to attract fresh investments and open new avenues for business expansion,” stated Rustam Karagoishin.

Baiterek Holding's subsidiary, Development Bank of Kazakhstan, has a successful history of collaboration with Citigroup. The bank maintains correspondent accounts with Citi New York and Citi London in US dollars and Japanese yen, respectively. This partnership has involved raising borrowed funds, issuing Eurobonds, and engaging in transactions in the bond market.

One notable example of successful cooperation between the two organizations was the JBIC/Citi loan of 3.4 billion yen in 2009. This loan financed the construction of a gas turbine power plant in Kyzylorda, ensuring a reliable power supply to consumers in the region. Citigroup also served as an underwriter and financial advisor for DBK's Eurobond issues in 2017, 2018, 2021, 2022, and 2024.

In 2024, Citigroup participated in the issuance of DBK Eurobonds totaling US$500 million and "sustainable" bonds worth 100 billion tenge. Additionally, Citigroup acted as an ESG consultant for the issuance.