"The project will increase the capacity and reliability of electricity supply to consumers in western regions of Kazakhstan. It will also help to reduce losses in the networks, thereby increasing the efficiency of the power system," comments Nurlan Baibazarov, Chairman of the DBK Board.
To finance the project, the Bank uses funds raised on the KASE exchange on March 29 from the placement of the debut green bonds. With these funds DBK bought green KEGOC bonds which were traded on the KASE on March 30, and the funds from their placement will go directly to finance the project. It should be noted this is the first DBK transaction structured in the form of a bond loan.
In addition to DBK, the European Bank for Reconstruction and Development participates in the project as a co-investor. This joint project shows the potential to attract foreign investment in the development of Kazakhstan's infrastructure.
Among the social effects of the project, it should be noted ensuring uninterrupted and safe supply of electricity to consumers, reducing environmental emissions and technical losses, as well as reducing electricity consumption by 4,392 million kilowatt-hours per year. In addition, more than 450 jobs for Kazakhstani specialists will be created during the construction period.
It should be noted DBK finances quasi-public sector projects only jointly with other creditors on the terms of syndicated or co-financing, as well as if these projects comply with ESG principles.
