Development Bank of Kazakhstan placed green bonds on AIX

Monday, 25 December 2023


Astana International Exchange (“AIX”, “Exchange”) is pleased to announce the placement of “green” bonds of Development Bank of Kazakhstan JSC (a subsidiary of Baiterek NMH JSC, “DBK”,” Bank”) on the AIX.

The value of the securities issue amounts to $15m, the coupon rate based on the results of the book-building was determined at 5.65% with coupon payment paid every six months.

The bonds were purchased by market participants in full. The demand from investors for the announced placement volume resulted in a 22.3% over-subscription 122.7%. This issue of “green” bonds is the first such transaction carried out by the Development Bank on the AIX.

Renat BekturovAIFC Governor, said:

“Today a new milestone has been reached in the development of green finance not only in Kazakhstan, but also in the 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, the AIX has proven itself as a platform for innovative as well as sustainable financial products. I would like to thank Baiterek Holding, its subsidiaries, and all our issuers for their continued choice of our platform.”

The funds received will be used to finance a renewable energy project in Kazakhstan. The choice will 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.

Botagoz Abisheva, Deputy Chairman of the Management Board of the Baiterek Holding said:

“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”.

Marat Yelibayev, Chairman of the Board of DBK.

“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.”

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.