Damu Entrepreneurship Fund JSC (Fund) in partnership with the United Nations Development Programme (UNDP) has issued debut green bonds on the Astana International Exchange (AIХ).
The initiative is implemented within the agreement between the Fund and UNDP on reduction of investment risks in renewable energy. Under the agreement in addition to subsidizing a part of the coupon rate for the Fund's green bonds, UNDP provides technical support in selection of green projects. Investments attracted by the Fund will be placed in second-tier banks/microfinance organizations to further support micro-, small and medium-sized enterprises, implementing 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 Dr. Kairat Kelimbetov, AIFC Governor.
AIFC’s Green Finance Center facilitated consultations and provided a Second Party Opinion, which entitles the Fund to use the attracted investments in compliance with the international green bonds principles and to disclose information on the intended use of funds attracted to place this issue’s assets.
“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 Mrs. 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,’’ stated Mr. Yakup Beris, UNDP Resident Representative in Kazakhstan.
The Green Finance Center has been created to develop green bonds market. The Eurasian Development Bank is a co-shareholder of this Center.
AIFC. On December 7, 2015, on the initiative of the First President of the Republic of Kazakhstan, Elbasy Nursultan Nazarbayev, signed the Constitutional Law on the establishment of the International Financial Centre Astana (AIFC). The purpose of AIFC is the formation of a leading centre of financial services on international level. AIFC’s tasks are to assist in attracting investments to the country’s economy by creating an attractive environment for investing in financial services, developing the securities market of the Republic of Kazakhstan, ensuring its integration with international capital markets. www.aifc.kz
AIFC Green Finance Centre Ltd is an AIFC’s organisation responsible for introduction of green finance instruments in Kazakhstan and Central Asia, promoting Astana International Financial Centre as a green finance hub and attracting green investments into Kazakhstan. For more information, please visit corporate web site: www.gfc.aifc.kz.
“Damu” Fund is a state fund established in accordance with the Order of the Government of the Republic of Kazakhstan dated 26.04.1997. No. 665 in order to promote sustainable development of micro, small and medium-sized entrepreneurships in Kazakhstan, through the implementation of comprehensive and efficient support tools. www.damu.kz