Records of lending and «green» bonds: Results of 2023 in the Development Bank of Kazakhstan

Development Bank of Kazakhstan JSC (a subsidiary of «Baiterek» National Holding Holding JSC) summarized its activities in 2023. In the outgoing year, the Bank expanded financing for the real sector of the country's economy, particularly for large projects in the manufacturing industry, infrastructure, and export operations.

Throughout 2023, the Bank approved a record number of projects – 40 projects totaling 1.2 trillion tenge. Financing was provided for 36 projects in the manufacturing industry and infrastructure, as well as for pre-export operations, with a total amount of 727 billion tenge. Also, the Bank improved the business processes by reducing the application processing time from 73 to 60 days.

It is worthy to note that during 2023, three investment projects were put into operation, creating 798 new permanent jobs. The top 5 sectors in the Bank's portfolio by the end of the year were projects in metallurgy (24.6%), oil refining (21.2%), mining and metallurgical complex (16.7%), power supply (9.7%), and engineering (7.2%).

An important achievement in the DBK's work was the introduction of a new instrument – syndicated financing of projects in collaboration with Kazakhstani second-tier banks. On December 29, the Bank, together with Nurbank JSC and Bank CenterCredit JSC signed an agreement of intent to provide financing within the framework of a syndicated loan.

High ratings were also noted, obtained as a result of an independent assessment of the risk management and internal control system, confirming the Bank's processes' compliance with international standards COSO ERM and Basel.

Among the achievements, it should also be highlighted: the debut placements of «green» bonds on the Kazakhstani stock market in March, bond listing of 10 billion tenge on the KASE exchange, and in December, listing on the AIX exchange for 15 million US dollars. The latter, for the first time among all financial institutions in Central Asia, received certification for international climate bonds standards from the Climate Bonds Initiative.

In 2023, DBK became one of the first in Kazakhstan to receive an ESG rating at the level «3» with an overall score of 60 from the Sustainable Fitch agency. This rating reflects the bank's commitment and initiatives in the field of sustainable development.

Investment-grade ratings maintained. S&P Global Ratings limits the outlook to «stable» confirming ratings at the «BBB-» level. Moody's confirmed DBK's issuer ratings at «Baa2» level, with the forecast changed from «stable» to «positive». Fitch confirmed DBK's rating at the «BBB/stable» level.

International cooperation continued expanding actively. In May, was signed a credit agreement with the State Development Bank of China for up to 300 million US dollars. During 2023, a series of cooperation agreements were concluded with such foreign financial organizations as Czech Export Bank, Sinosure, LBBW, Helaba, and Saudi EXIM Bank. The DBK joined the Association of Development Financing Institutions in the Asia-Pacific region as a full-fledged participant.

«The Development Bank of Kazakhstan expresses gratitude to its partners for trust and fruitful cooperation in 2023 and wishes for even more stability, successful projects, and new opportunities for growth and achievement of the country's leadership tasks in the coming new year 2024», commented Marat Yelibayev, Chairman of the Management Board of DBK.

In 2024, DBK will continue to develop financing tools to support the diversification of Kazakhstan's economy and promote large projects in the processing industry and infrastructure.

АО «Банк Развития Казахстана»
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