Halyk Bank was the first among the STBs of Kazakhstan to finance a “green” loan, confirmed by an independent assessment of the AIFC Green Finance Centre, for the construction of a 5 MW bioelectric power plant in the Karaganda region

Nur-Sultan, November 19th, 2021. Halyk Bank (Halyk Savings Bank of Kazakhstan JSC) was the first among the second-tier banks in Kazakhstan to finance a “green” loan from «KAZ GREEN ENERGY» LLP, verified by a third party (Third-Party Opinion) – the AIFC Green Finance Centre, for the construction of a 5 MW bioelectric power plant in the Karaganda region, Zhezkazgan, Kengir village.

“The concept of “green growth” has become an integral part of economic policy for many countries, including Kazakhstan. On the scale of the Halyk Group, the Bank and its subsidiaries actively promote and support projects of clients and partners related to the green economy. It is very important that for the first time in Kazakhstan, the “green” project received an independent assessment in the Third-Party Opinion format. As part of the new development strategy of the Halyk Group, we intend to continue to pay special attention to the development of projects that correspond to the fulfillment of key tasks within the ESG system of the Bank and the creation of specialized financial products” – said Umut Shayakhmetova, Chairman of the Management Board of Halyk Bank.

The project provides for the creation of a complex for the reception and processing of solid household waste (hereinafter – SHW) of the population (primarily biomass) and their conversion into electricity. The construction of the power plant is based on the use of a unique innovative technology for processing solid waste using a pyrolysis thermochemical system to produce the main product – biogas with subsequent electricity generation.

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«KAZ GREEN ENERGY» LLP, which is part of the Kazakhmys Holding Fuel and Energy Complex, received a green loan from Halyk Bank in the amount of 7.9 billion tenge. The AIFC Green Finance Centre has developed an external assessment in the Third-Party Opinion format, according to which the internal documents of «KAZ GREEN ENERGY» LLP, including the Policy in the field of green financing, fully comply with the Principles of Green Lending LMA (Loan Market Principles) and LSTA (Loan Syndications and Trading Association).

Work is underway to include this “green” loan in the database of the international analytical platform Environmental Finance.

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According to the BloombergNEF research service, in 2020 the amount of debt raised for sustainable development amounted to $732.1 billion, which is 29% more than in 2019. Social and green bonds were the most popular. However, in parallel with the bond market, the green lending market is rapidly developing, which accounted for $80.3 billion of last year’s growth.

In order to form a qualitative growth of the green lending market in 2018, the Credit Market Association, which unites over 700 participants of the European lending market, has developed the Principles of Green Loans. In accordance with these principles, the loan agreement must specify that the funds raised will be used to finance environmental projects, and the borrower must submit documents confirming that the project belongs to the green category. Accounting for such loans is separated from other borrowings so that the funds are not used for other purposes. Moreover, the borrower must regularly disclose to creditors information about the funds used.

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Halyk Bank of Kazakhstan (HALYK Bank) is a leading financial group in Kazakhstan operating in various segments, including retail, SME and corporate banking services, insurance, leasing, brokerage services and asset management. The Bank has been listed on the Kazakhstan Stock Exchange since 1998, on the London Stock Exchange since 2006 and on the Astana International Exchange since October 2019.

With assets in the amount of KZT 11,002.4 billion as of June 30, 2021, the Bank is the leading credit institution in Kazakhstan. The Bank has the largest customer base and branch network – 592 branches and branches across the country. The Bank also operates in Georgia, Kyrgyzstan, Russia and Uzbekistan.

PR-service of JSC “Halyk Bank of Kazakhstan”

tel. +7 727 330 17 19 , / [email protected] | www.halykbank.kz

«KAZ GREEN ENERGY» LLP is a part of the Kazakhmys Holding fuel and energy complex, the main activity is the implementation of projects in the field of renewable energy sources, established in 2014. According to the strategic plan, the construction of green energy facilities with a total capacity of 350 MW is envisaged. The first implemented project of KAZAKHMYS Group is the Kengir Solar Power Plant with a capacity of 10 MW.

«KAZ GREEN ENERGY» LLP

tel. +7 7212 559939, | [email protected]

Astana International Financial Centre was established on the initiative of the First President of the Republic of Kazakhstan – Elbasy Nursultan Nazarbayev as part of the National Plan “100 steps to implement five institutional reforms”. On July 2, 2020, as part of the meeting of the AIFC Management Council, the Center’s Development Strategy was adopted until 2025.

According to it, the vision of the AIFC is to become a leading international financial centre in the region, including Central Asia, the Caucasus, the EAEU countries, Western China, Mongolia and Eastern Europe.

The mission of AIFC is to promote the sustainable long-term development of the region. As the Head of State noted, K.Tokayev, “The AIFC with its unique capabilities can act as a universal platform connecting the countries of the region”. www.aifc.kz

The AIFC Green Finance Centre is an AIFC Organisation created to enable the development of green finance in Kazakhstan and Central Asia. The main goal is to bring investments to sustainable economy through trending financial instruments, such as green and social bonds. In addition to that, the AIFC Green Finance Centre, being a regional think-tank, provides strategic and business consulting in green finance and sustainable development to Governments, quasi-state organisations and entrepreneurs. The Centre provides initial assistance to potential issuers, investors and market players on preparations for the issuance of green bonds on the AIFC Exchange (Astana International Exchange). www.gfc.aifc.kz