KAZAKHSTAN: Damu Fund has Listed First Green Bonds on AIX

Tuesday August 11 2020

On 11^th August 2020, the Astana International Exchange (AIX) announced that JSC Entrepreneurship Development Fund “Damu” (“Damu Fund”), in cooperation with the United Nations Development Programme (UNDP) aimed at reducing the risks of investments in renewable energy sources (RES), has registered and issued green finance bonds on AIX in the amount of KZT 200 million with a maturity of 36 months.

The coupon rate is 11.75%. 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. AIFC Green Finance Center has provided full support of the project and an external review in the form of Second Party Opinion which is based on the assessment of the alignment of Issuer’s Green Bond Framework with the AIX Green Bonds Rules and ICMA (International Capital Market Association) Green Bond Principles.

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 programme will be partially subsidized by the UNDP. UNDP will also provide technical support to Damu 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.

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