A subsidiary of the Baiterek holding, the Damu Entrepreneurship Development Fund, with the support of the United Nations Development Program (UNDP), successfully debuted the placement of green bonds in the trading system of the Astana International Financial Center (AIFC) with a coupon rate of 11.75% per annum and a circulation period of 3 years.
BCC Invest JSC, a subsidiary of Bank CenterCredit JSC, was the lead manager for the issue and placement of the Fund's green bonds.
The issue of the Fund's “green” bonds became possible within the framework of an agreement with UNDP to reduce the risks of investing in renewable energy. Funds from the placement of bonds will be directed to second-tier banks, microfinance organizations for further lending to SMEs implementing green projects. In addition to subsidizing part of the Fund's green bonds coupon rate, UNDP also provides technical support in the selection of green projects.
- The placement of the Fund's debut "green" bonds confirms that the new instrument can be successfully implemented on the local capital market. We hope that further cooperation with UNDP and the AIFC Green Finance Center will give a new impetus to efforts aimed at stimulating investment in renewable energy projects, - Gaukhar Buribaeva, Chair of the Board of the Foundation, commented
The pilot project was implemented with the support of the AIFC Green Finance Center, which provided the necessary consulting support and provided an independent opinion (Second Party Opinion).
The Fund's bonds became the first securities that comply with the “green” principles of the AIFC stock exchange.
- Undoubtedly, the issuance of the debut "green" bonds on the AIX exchange is a landmark event, which in general launches a new bond market in Kazakhstan. We would like to thank the Baiterek holding, the Damu Fund and the UNDP for the well-coordinated work and hope that this is only the beginning of a great joint cooperation, - noted the Governor of the AIFC Kairat Kelimbetov.
- We highly value our cooperation with national partners and will continue to facilitate Kazakhstan's transition to low-carbon development and fulfillment of international obligations under the Paris Agreement, - in turn, said UNDP Resident Representative in Kazakhstan Yakup Berish.