DBK issues its first loan in digital tenge under ECA insurance coverage

JSC Development Bank of Kazakhstan (a subsidiary of the Baiterek Holding, hereinafter – DBK, the Bank), with the support of JSC Bank CenterCredit and under insurance coverage provided by Export Credit Agency of Kazakhstan, together with the National Bank of Kazakhstan and JSC National Payment Corporation, has successfully implemented a pilot export financing project using the digital tenge.

The project enables full traceability of funds and eliminates the risk of their misuse. As noted by the Head of State in his Address, the development of the digital tenge is a key element of the country’s new financial ecosystem. The digital tenge offers significant advantages in project financing, serving as an effective tool to enhance transparency, speed and reliability of financial transactions.

Within the pilot framework, DBK disbursed a loan in digital tenge to finance the purchase of raw materials for production under a pre-export financing arrangement for Qazaq-Astyq Group LLP. With the support of DBK, the company’s oil extraction plant located in the Abai Region exports products such as unrefined sunflower and rapeseed oil, sunflower and rapeseed meal, and phosphatide concentrates.

Insurance coverage for the loan provided to Qazaq-Astyq Group LLP, under a joint initiative of DBK and the Export Credit Agency of Kazakhstan aimed at supporting domestic enterprises in the oil and fats sector, was arranged by the Export Credit Agency of Kazakhstan (ECA).

The project was supported by the Bank as part of its exporter support financing programme. A portion of the loan was issued in digital tenge. The funds will be used to procure raw materials for production and subsequent export of vegetable oil.

C Bank CenterCredit also participates in the implementation of the digital tenge project. The borrowed funds were transferred from the borrower’s digital account opened with DBK to a digital account at Bank CenterCredit, followed by onward transfer and confirmation of the targeted use of funds.

“Using the digital tenge in loan disbursement ensures operational efficiency and high-speed settlements. One of the key features of the digital tenge is its ability to be marked, which significantly strengthens control over the targeted use of loans,” said Marat Yelibayev, Chairman of the Management Board of DBK.

DBK views the results of the pilot financing as an important practical step in implementing the instructions of the Head of State and developing the digital financial infrastructure, as well as a foundation for formulating proposals on the further application and potential scaling of the digital tenge in export financing and other areas of the Bank’s operations.