BAKU, Azerbaijan, December 3. Halyk Bank today announces that it successfully placed its debut green bond on the Kazakhstan Stock Exchange (KASE) on December 3, 2024, becoming the country’s first commercial bank to issue the sustainability-linked fixed income debt instruments, Trend reports.
The notes, issued in the amount of 20 billion tenge (KZT) for a period of three years, signal the Bank's ongoing commitment to supporting environmentally sustainable projects and mark a significant step in Kazakhstan's transition to a green economy.
Proceeds from the placement will be used to finance projects that help to foster more efficient use of natural resources, to reduce environmental impact, to mitigate the effects of climate change and for climate adaptation, all contributing to achieving the UN’s Sustainable Development Goals. In accordance with the Bank's Green Finance Policy, the categories of eligible projects will be based on the Taxonomy of Green Projects of the Republic of Kazakhstan, international taxonomies for climate-aligned projects, and the Green Bond Principles (GBP) of the International Capital Markets Association (ICMA).
Halyk Bank CEO Umut Shayakhmetova commented: “For our bank, this green bond issue is not just a financial instrument, but an opportunity to make a real contribution to the development of a more sustainable economy in Kazakhstan. We are pleased to be able to support projects that have a positive impact on the environment and promote more responsible use of natural resources. It is widely known that our bank was the first Kazakhstani financial institution to publish an annual ESG report in accordance with international GRI standards. In 2022, Halyk was again first among Kazakhstani banks to join the UN Global Compact, and in July 2023, first to publish its sustainability report in accordance with the TCFD recommendations. Continuing in this pioneering tradition of actively implementing best ESG practices, Halyk has now become the first commercial bank in Kazakhstan to issue green bonds. We will continue to expand our participation in environmental initiatives to contribute to building a greener and more sustainable nation.”
Halyk Finance JSC acted as the lead manager and bookrunner for the green bond issue. Green Investment Group carried out an independent assessment (second party opinion) of the issuer's internal documents and policies for compliance with the criteria of ICMA’s Green Bond Principles. More detailed information about these securities is available on the KASE website.
This is not Halyk's first initiative in the field of sustainable development. Since 2020, the Bank has sponsored a project to gasify the private homes of socially vulnerable members of the population in order to reduce toxic emissions. Halyk is also a partner in implementing the Qaryzsyz Qogam project, which aims to improve financial literacy among the rural population and reached more than 65 thousand people over the past year. Halyk’s ESG rating from MSCI ESG Research, which rose to BBB in March 2024, confirms that the Bank is moving in the right direction by making sustainable development a central part of its business strategy.