Debut green bonds issued on Astana International Exchange
Kazakhstan’s Damu Entrepreneurship Fund in partnership with the United Nations Development Programme (UNDP) has issued debut green bonds on the Astana International Exchange (AIХ), UNDP Kazakhstan said on August 11.
The initiative was carried out within the agreement between the fund and the UNDP on the reduction of investment risks in renewable energy. Under the agreement, the UNDP subsidises a part of the coupon rate for Damu's green bonds and provides technical support in green projects selection. Investments attracted by Damu will be placed in second-tier banks and microfinance organisations to further support micro, small and medium sized enterprises (SMEs) that implement green projects.
“Supporting green projects by issuing green bonds and introducing green financial tools is one of AIFC’s priorities. Obviously, the issue of the debut green bonds on the AIX is a milestone event, which marks a launch of a new bond market in Kazakhstan. We would like to thank the Baiterek holding, the Damu Fund and UNDP for their well-coordinated work and hope that this is only the start of our great cooperation,” said Kairat Kelimbetov, the Astana International Financial Centre (AIFC) governor.
“The Damu Fund, as a national development institution, is ready to support the implementation of green finance projects. We hope that the successful issuance of the debut green bonds will give a new impetus to efforts aimed at stimulating investment in renewable energy projects among SMEs,” said Gaukhar Buribayeva, chairperson of the fund's board.
“In addition to addressing environmental issues, investments into green economy present a unique opportunity to accelerate socio-economic development, stimulate economic diversification, generate new jobs and support SMEs. We greatly value our partnerships with national stakeholders, which help leverage new investments for Kazakhstan's transition to low-carbon growth and fulfil its international commitments under the Paris Agreement,’’ said Yakup Beris, UNDP resident representative in Kazakhstan.
The Astana International Financial Centre (AIFC), officially established in 2015, aims to become a leading centre for financial services in Kazakhstan’s surrounding region. AIFC’s tasks include assistance in attracting investments to the country’s economy via formation of an attractive investment environment in financial services, development of the securities market of Kazakhstan and ensuring of the market’s integration with international capital markets.
Damu Fund is a state-run fund aimed at promoting sustainable development of micro, small and medium sized entrepreneurships in Kazakhstan.