On December 25, a solemn ceremony of placement of «green» bonds of Development Bank of Kazakhstan JSC (a subsidiary of Baiterek NMH JSC, hereinafter referred to as DBK or Bank) took place at the AIX. The ceremony was attended by the Deputy Chairman of the Management Board of Baiterek National Holding JSC Ms. Botagoz Abisheva and the Head of DBK Mr. Marat Yelibayev.
The volume of the securities issue amounted to 15 million US dollars, the coupon rate based on the results of trading was determined at 5.65% with coupon payment paid every six months.
«Given the plans announced by the country’s president to achieve carbon neutrality by 2060 and the general trend towards implementing ESG principles, Baiterek pays special attention to supporting «green» projects, which include renewable energy, increasing energy efficiency, and modernizing existing energy infrastructure. Today’s placement of «green» bonds will be another step towards the development of renewable energy sources in Kazakhstan,» said Ms. Botagoz Abisheva, Deputy Chairman of the Management Board of the Baiterek Holding.
All bonds placed on the AIX exchange were purchased by market participants in full. At the same time, the demand from investors for the announced placement volume amounted to 122.7 %.
«DBK is actively introducing ESG principles into its work and the activities of its borrowers, including through the introduction of sustainable financing instruments for the development of a green economy in Kazakhstan. Part of this policy was the current placement of bonds on the AIX platform - these are the Bank’s second «green» bonds. It is important that for the first time in Central Asia, certification was obtained for this placement according to the international standards of the Climate Bonds Initiative,» emphasized Mr. Marat Yelibayev, Chairman of the Board of DBK.
It should be noted that the Climate Bonds Initiative certification was obtained in partnership with the Green Finance Center of the Astana International Financial Center. It reflects the securities' compliance with global climate bond standards. Thus, the Development Bank bonds became the first transaction on the debt capital market among financial institutions in Central Asia to receive certification according to CBI international standards.
The funds received as a result of the placement will be used to finance a renewable energy project in Kazakhstan. The choice can be made between three projects on renewable sources, the list of which was determined in accordance with CBI certification, depending on the readiness of the projects for the stage of disbursement of loan funds.
Thanks to the implementation of these projects, the share of renewable energy sources in the total volume of energy generation in Kazakhstan will increase, and the deficit in the country’s energy system will also be reduced.
The issue of «green» bonds was the first transaction carried out by the Development Bank on the Astana International Exchange platform.
«Today, a new milestone has been reached in the development of green finance not only in Kazakhstan, but also in the whole region, namely, the first placement of green bonds certified according to the Climate Bonds Initiative (CBI) standard in Central Asia. I am glad that over the years our exchange has established itself as a platform for innovative as well as sustainable financial products. I thank the Baiterek holding, the holding’s subsidiaries, as well as all our issuers for their constant choice of our platform,» kindly noted Mr. Renat Bekturov, Manager of the Astana International Financial Center.
The Jusan Invest Company acted as a financial consultant and underwriter in this transaction.
