ASTANA – The Astana International Financial Centre’s (AIFC) Green Finance Centre has published the Comprehensive Casebook on Sustainable Financial Instruments, showcasing 18 flagship projects with a total value exceeding $650 million, reported AIFC press service.
The casebook offers insights into the practical application of sustainable finance instruments, including green, social, sustainability bonds and loans. These instruments have been utilized by companies to implement initiatives addressing climate change, advancing gender equality, and contributing to the Sustainable Development Goals (SDGs) across Kazakhstan, Kyrgyzstan, Uzbekistan, and Azerbaijan.
“This casebook reflects the interim outcomes of our collaborative work with partners to promote sustainable finance across the region. It features real-world cases of green, social, and sustainability bond issuances and demonstrates that sustainable finance is a functional and impactful mechanism for addressing climate challenges and supporting inclusive development in Kazakhstan and Central Asia,” said Manas Gizhduaniyev, CEO of the AIFC Green Finance Centre.
Since 2020, the AIFC Green Finance Centre has issued 45 external reviews, including Second-Party Opinions (SPOs), one Climate Bonds Initiative (CBI) Verification Report, and verifications of annual reports for issuers across the region.
Case studies
Some of the highlighted case studies include Kazakhstan’s first green bond issued by Damu Entrepreneurship Development Fund, first corporate gender bonds (Solva) issued by OnlineKazFinance, first green bonds with subsidized coupon rate issued by KazWind Energy, and first Climate Bonds Certification (CBI)-certified green bonds in Kazakhstan and Central Asia by Development Bank of Kazakhstan.
Damu Fund became the country’s first green bond issuer. The bond proceeds were used to extend a 200 million tenge (US$ 394,000) loan over a five-year term to finance the purchase of equipment for a two megawatt solar power plant in the Turkistan Region.
Solva issued Kazakhstan’s first corporate gender bonds totaling 20 billion tenge (US$39 million). The proceeds were fully allocated to finance and/or refinance businesses led by women entrepreneurs and micro, small and medium enterprises. The issuance enabled the disbursement of loans totaling 31 million tenge (US$61,000) to over 14,000 clients, including 97 women-led companies, 11,140 women entrepreneurs, and 3,554 self-employed women.
KazWind Energy became the first issuer of subsidized green bonds in Kazakhstan, placing 3 billion tenge (US$5.1 million) in notes through the Damu Fund under the national SME support programme. The proceeds were directed towards the construction of a 48 megawatt wind power plant in the Arkalyk district of the Kostanai Region. The project reached full commissioning on 12 Dec. 2023.
The Development Bank of Kazakhstan issued the first CBI-certified green bonds in Kazakhstan and Central Asia, raising $15 million. The net proceeds were fully allocated to finance a 150 megawatt wind power plant in the Khromtau district of the Aktobe Region.
Another featured case study highlights Azerbaijan’s first green bond issuance by UNIBANK Commercial Bank. As one of the country’s leading private banks, UNIBANK raised 20 million Azerbaijani manat (US$11.8 million) on the Baku Stock Exchange.
