BAKU, Azerbaijan, Aug.11
By Nargiz Sadikhova – Trend:
Kazakhstan’s Damu Entrepreneurship Development Fund in cooperation with United Nations Development Program (UNDP) has issued green finance bonds on the Astana International Exchange (AIX), Trend reports with reference to the Astana International Finance Center (AIFC).
The green finance bonds in the amount of 200 million tenge ($475,917) with maturity of 36 months are aimed at reducing the risks of investments in renewable energy sources (RES).
The coupon rate of the bonds is 11.75 percent. This placement is the first listing of securities that comply with the green principles in AIX’s Green Bond Rules and the first listing of green bonds in Kazakhstan.
The offering proceeds will be placed with second-tier banks and microfinance organizations for further financing of small-scale RES investment projects undertaken by small and medium businesses within the Damu Fund’s green financing framework.
Interest payable by the approved borrowers to Damu Fund under the program will be partially subsidized by UNDP, which will also provide technical support to the fund in evaluation and selection of eligible RES investment projects. BCC Invest JSC acts as a lead manager of the green bond offering by Damu Fund on the AIX.
"The listing of green bonds on the AIX is an important step of Damu Fund in the implementation of the strategy of “green” financing and support for micro, small and medium-sized businesses. We hope that this issuance will serve as an incentive for the development and financing of RES and energy efficiency projects. If there is demand for 'green' financing, the Damu Fund will be happy to consider the possibility of additional issuance of green bonds to invest in such projects," CEO of Damu Fund Gaukhar Buribayeva said.
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