The Astana International Exchange (“AIX”, “Exchange”) is pleased to announce 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.
CEO of AIX, Tim Bennett, noted:
“We are delighted to welcome our first green bond issuer. We hope that the listing of securities of “Damu” Fund in compliance with AIX’s Green Bond Rules will serve as an example for other organizations that need to raise funds to develop a green economy.”
CEO of “Damu” Fund, Gaukhar Buribayeva, emphasized:
“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.”
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, the Shanghai stock exchange, the silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details: www.aix.kz
AIFC. Astana International Financial Center (AIFC) was established on the initiative of Nursultan Nazarbayev, the First President of the Republic of Kazakhstan. The constitutional law establishing AIFC was signed on December 7, 2015. The aim of AIFC is to form a leading center of international financial services. The objectives of AIFC are to assist in attracting investments into the country’s economy, create an attractive environment for investment in financial services, develop the securities market of the Republic of Kazakhstan and ensure its integration with international capital markets. www.aifc.kz
JSC “Entrepreneurship Development Fund “Damu” is a national development institution created to stimulate the formation and economic growth of business entities in the Republic of Kazakhstan, as well as to improve the efficiency of the use of state financial resources aimed at supporting entrepreneurship. Damu Fund offers business support tools for entrepreneurs, as well as people with entrepreneurial initiative: lending programs through second-tier banks, microfinance organizations, leasing organizations; subsidizing interest rates; guarantees for young, start-up and active entrepreneurs distribution of information and analytical materials; free education. https://damu.kz/en/
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