Samruk-Energy raised KZT18.4bln through offering of Green Bonds on the AIX

The Astana International Exchange (“AIX”, “Exchange”) is pleased to announce that “Samruk-Energy” JSC, 100% subsidiary of “Sovereign Wealth Fund “Samruk-Kazyna” JSC, has listed with AIX its debut Green Bond in the amount of KZT18.4bn maturing November 2028 with the coupon rate of 11.40%. The full amount was raised on AIX via book-building.

“Halyk Finance” JSC acted as a bookrunner and a lead manager of the placement. An independent assessment on the bond’s compliance with green bond principles (Second Party Opinion) is provided by the Center for Green Finance.

Renat Bekturov, CEO of the AIX, stated:

“Combating climate change is one of the greatest challenges of our time, requiring far more financing than governments alone can provide. Green bonds now stand as a key solution facilitating the transition to a low-carbon future and AIX is proud to be on forefront of this process in the region.”

Sungat Yessimkhanov, Chairman of the Board of Samruk-Energy, said:

“It is worth noting that Kazakhstan, like the whole world, is embarking on the stage of 4th energy transition to the widespread use of renewable energy sources, which over time will largely supersede fossil fuels – gas, oil, coal. In this regard, global trends towards the transition to a “green economy”, growing ESG requirements of stakeholders, are challenges for Samruk-Energy. To that end, the company outlined directions for transition to a “green” economy in the Development Strategy and is confidently moving towards achieving it. We would like to thank the AIFC Green Finance Centre, Halyk Finance, and Astana International Exchange for the well-coordinated work,”

Farkhad Okhonov, Chairman of the Board of Halyk Finance, commented:

“Halyk Finance, having advanced experience in organizing transactions to raise funding in the debt capital market, is grateful for the opportunity provided through the placement of the debut issue of green bonds by Samruk-Energy to develop new instruments in the Kazakhstan debt market aimed at promoting ESG principles. We expect that the volume of the market for ESG bonds and green bonds in Kazakhstan will continue to grow amid stimulating the implementation of sustainable development practices and setting goals related to ESG and Green metrics, both among issuers and investors”.

Aidar Kazybayev, CEO of the AIFC Green Finance Centre, said:

“This is a significant event on the eve of the 30th anniversary of the Independence Day of the Republic of Kazakhstan, when the first Kazakhstani issuer from the production sector enters the green track, realizing its importance as an engine of sustainable development. The active use of sustainable financing instruments and the growth of the local market for sustainable securities, in general, is the main indicator of our work as a development institution that implements financial instruments for sustainable development, such as green and social bonds.”

Reference:

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

The Astana International Financial Centre was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on August 2, 2020. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe.

The mission of the AIFC is in assisting the sustainable and long-term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region. ”The strategic directions for the sustainable development of the AIFC include the development of a circular economy, financial technologies, and “digital financial centre.” https://aifc.kz/

The AIFC Green Finance Centre is a subsidiary organisation of the AIFC Authority and the Eurasian Development Bank, aimed at introduction and development of sustainable finance instruments and attracting of investments in environmental and social projects in Kazakhstan and Central Asia.

The AIFC Green Finance Centre supported the very first issuance of green bonds and first verified green loan in Kazakhstan. Also, the Centre introduced definitions of green finance and green taxonomy (a classifier of economic activities and projects that meet technical selection criteria) in the national environmental legislation. The new legislation provides incentives for entrepreneurs who use green finance instruments. gfc.aifc.kz