Social bonds as a pathway to post-pandemic economic recovery
Within the framework of the Second Eurasian Congress, Eurasian Development Bank, AIFC Green Finance Centre and Kazakhstan Housing Company signed a cooperation agreement. The parties agreed to coordinate joint efforts for preparation and placement of green and social bonds of Kazakhstan Housing Company on Astana International Exchange.
Social bonds – are bonds, the proceeds from which are directed to social projects.
As part of the issue of social bonds, Eurasian Development Bank expressed its intention to act as an underwriter, financial consultant and investor and make the necessary efforts for implementation of the project.
AIFC Green Finance Centre, having a substantial experience in supporting attraction of financing through sustainable financing instruments, will provide the necessary consulting support on international requirements for social bonds, as well as prepare an external review in the form of a Second Party Opinion for compliance of the Issuer’s policy in the field of green and social bonds with Green / Social Bonds Principles of International Capital Market Association.
2021 was an important milestone in the development of the sustainable finance market in Kazakhstan, with the first green bond issue taking place back in 2020. The pandemic has contributed to the popularization of especially social bond issues around the world, aimed at addressing the socio-economic impact of Covid-19.
«With the support of the AIFC Green Finance Centre, in 2021 several green loans were attracted, and green bond issues were placed. The Centre intends to further develop the system of sustainable financing in Kazakhstan and provide professional support to market participants», — said Aidar Kazybayev, CEO of AIFC Green Finance Centre.
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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 July 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 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).
“Kazakhstan Housing Company” JSC was established in 2000 in accordance with the resolution of the Board of the National Bank of the Republic of Kazakhstan in order to implement the Concept of long-term financing of housing construction and development of mortgage lending. Company aims at ensuring the further implementation of government measures aimed at increasing the provision of high-quality and comfortable housing to the country’s population, including by providing support to the construction industry, creating conditions for a balanced growth in demand and supply in the housing market and mortgage lending.
