AIFC Green Finance Centre, Ltd., a subsidiary of the EDB, arranges the first issue of green bonds in Central Asia for KZT 200 million
Nur-Sultan, 12 August 2020. AIFC Green Finance Centre, Ltd. whose shareholders are the Eurasian Development Bank (EDB) and the Astana International Financial Centre Authority, arranged the first issue of the Damu Entrepreneurship Development Fund’s green bonds in Kazakhstan and Central Asia for a total of KZT 200 million. The issue was offered through the Astana International Financial Centre’s (AIFC) stock exchange, with a coupon of 11.75% and three-year maturity. AIFC Green Finance Center, Ltd. has provided a second party opinion, according to which the issuer will use the proceeds from the issue and disclose information about their intended use in line with the international Green Bond Principles.
In mid-July 2020, the EDB purchased shares in AIFC Green Finance Centre, Ltd. from the AIFC Authority. In doing so, the Bank has expanded its green finance operations.
“In recent years, the EDB has gained a successful track record of financing renewable energy, which makes it possible for the Bank to position itself as an active participant in the green finance market. Since 2017, the Bank has increased its involvement in renewable energy projects by 290 MW. The portfolio of new projects in 2019 totalled 120 MW. The amount of funds extended for renewable energy projects is US $553 million. The EDB and the AIFC are doing a lot in the area of green finance,” commented Amangeldy Issenov, Deputy Chairman of the EDB Management Board.
In 2019, the EDB developed and approved a programme to finance renewable energy projects. Its objective is to build up the Bank’s portfolio in the renewable energy sector and extend further support to the member states in developing green energy.
“The Bank intends to expand its activity in the green finance market in order to improve financing conditions for borrowers who would be able to attract targeted funds from institutions specialising in green finance and benefit from further upgrades of the EBD’s ratings” Amangeldy Issenov emphasised.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
The Astana International Financial Centre (AIFC) was set up on the initiative of the First President of Kazakhstan Nursultan Nazarbayev. The Constitutional Law on the AIFC was signed on 7 December 2015. The AIFC’s goal is to form a leading centre of world-class financial services. The objectives of the AIFC are to assist in attracting investments in the country's economy; create an attractive environment for investing in financial services; develop the securities market in Kazakhstan; and ensure its integration with international capital markets. www.aifc.kz
AIFC Green Finance Centre Ltd. is a company founded under the current law of the Astana International Financial Centre to introduce green finance instruments and attract green investments in Kazakhstan. For additional information please visit www.gfc.aifc.kz.