The EDB offers a debut three-year issue of social bonds for KZT 20 billion
Moscow, 5 November 2021. The Eurasian Development Bank (EDB) has successfully placed its debut three-year social bonds for a total of KZT 20 billion, with a coupon of 10.6%. The issue was offered on Kazakhstan Stock Exchange (KASE) and Astana International Exchange (AIX). Investor demand on both exchanges totalled KZT 30 billion. The arranger of the issue is Halyk Global Markets (a subsidiary of the Halyk Group).
The EDB has pioneered sustainable development projects in the EAEU and this issue is the first one offered simultaneously on both stock exchanges. The issue will be verified in accordance with the International Capital Markets Association (ICMA) Social Bond Principles by an independent accredited agency.
“In line with the EDB’s new Strategy approved by its Management Board this July, the Bank aims to promote green and social investment in the region. ESG projects currently make up 15% of the EDB’s portfolio and ESG investment in the region exceeds US $700 million. Most ESG projects are in Kazakhstan and this was the reason to debut green and social bonds on KASE and AIX. This September, for example, the Bank successfully offered its debut green bonds on KASE and we’ll use the proceeds from today’s deal for projects with high social importance,” said Nikolai Podguzov, Chairman of the EDB Management Board.
The EDB intends to continue to finance green energy and socially important healthcare projects and to support the development of transport corridors in the EDB member states. This February, the Bank signed a memorandum of cooperation with Kazakhstan’s Ministry of Health to help it achieve the indicators set in the State Health Development Programme for 2020–2025. Mandate agreements have been signed for several projects to finance the construction and operation of general hospitals.
One of the key projects under consideration is the project to reconstruct and expand the Astrakhan–Mangyshlak water pipeline, which is expected to improve water supplies to households in Kazakhstan’s western regions and supply drinking water to the Kurmangazy, Isatai and Zhylyoi districts of the Atyrau Region, as well as to the town of Zhanaozen, and to the Beineu, Mangistau, Karakiya and Tupkaragan districts of the Mangistau Region where the pipeline is the only centralised source of water supply.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For 15 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. The EDB’s portfolio mainly consists of projects with an integration effect in the areas of transport infrastructure, digitalisation, green energy, agriculture, industry, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Media Centre:
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)
Sergey Gorbachev +7 (916) 727 22 00 (Moscow)