Sustainable Finance in Cases: 18 projects from the AIFC Green Finance Centre

The AIFC Green Finance Centre (GFC, the Centre) has released the Comprehensive Casebook on Sustainable Financial Instruments, showcasing its long-standing efforts to foster sustainable finance across Kazakhstan, Central Asia, and the Caucasus. 

The Casebook highlights 18 flagship projects supported by the Centre, representing a cumulative value of over USD 650 million. It offers insights into the practical application of sustainable finance instruments, including green, social, sustainability bonds and loans. These instruments have been utilised by companies to implement initiatives addressing climate change, advancing gender equality, and contributing to the Sustainable Development Goals (SDGs) across Kazakhstan, Kyrgyzstan, Uzbekistan, and Azerbaijan. 

Since 2020, the AIFC Green Finance Centre has issued 45 external reviews, including Second-Party Opinions (SPOs), one Climate Bonds Initiative (CBI) Verification Report, and verifications of annual reports for issuers across the region. 

Highlighted Case Studies: 

Kazakhstan’s first green bond issuance – Damu Entrepreneurship Development Fund 
Damu Fund became the country’s first green bond issuer. The bond proceeds were used to extend a KZT 200 million loan over a 5-year term to finance the purchase of equipment for a 2MW solar power plant in the Turkestan region. 

Kazakhstan’s first corporate gender bonds – MFO OnlineKazFinance JSC (Solva) 

Solva issued Kazakhstan’s first corporate gender bonds totalling KZT 20 billion. The proceeds were fully allocated to finance and/or refinance businesses led by women entrepreneurs and MSMEs. The issuance enabled the disbursement of loans totalling KZT 31 million to over 14,000 clients, including 97 women-led companies, 11,140 women entrepreneurs, and 3,554 self-employed women. 

Kazakhstan’s first green bonds with subsidized coupon rate – KazWind Energy LLP 
KazWind Energy became the first issuer of subsidized green bonds in Kazakhstan, placing KZT 3 billion in notes through Damu Fund under the national SME support programme. The proceeds were directed towards the construction of a 48MW wind power plant in the Arkalyk district, Kostanay region. The project reached full commissioning on 12 December 2023. 

First CBI-certified green bonds in Kazakhstan and Central Asia – Development Bank of Kazakhstan JSC 

The Development Bank of Kazakhstan issued the first CBI-certified green bonds in Kazakhstan and Central Asia, raising USD 15 million. The net proceeds were fully allocated to finance a 150MW wind power plant in the Khromtau district of Aktobe region. 

First green bond issuance in Azerbaijan – UNIBANK Commercial Bank OJSC 

UNIBANK, one of Azerbaijan’s leading private banks, issued the country’s first green bonds, raising AZN 20 million (USD 11.8 million) on the Baku Stock Exchange. Details regarding the allocation of proceeds will be disclosed in forthcoming reports. 

Manas Gizhduaniyev, CEO of the AIFC Green Finance Centre, stated: “This Casebook reflects the interim outcomes of our collaborative work with partners to promote sustainable finance across the region. It features real-world cases of green, social, and sustainability bond issuances and demonstrates that sustainable finance is a functional and impactful mechanism for addressing climate challenges and supporting inclusive development in Kazakhstan and Central Asia.” 

The AIFC Green Finance Centre remains the first and only institution in Central Asia accredited by leading global sustainable finance platforms, including the International Capital Market Association (ICMA) and the Climate Bonds Initiative (CBI). 

Explore the Comprehensive Casebook on Sustainable Financial Instruments via the link. 

Reference:  

The Astana International Financial Centre (AIFC) is a leading financial hub in the Eastern Europe and Central Asia region, designed to connect global capital with the vast opportunities of emerging markets. Positioned at the crossroads of Europe and Asia, the AIFC combines international best practices with innovative approaches to create a world-class platform for investment, business, and financial services. Since its establishment in 2018, the AIFC has attracted over USD 14.8 bln in investments into Kazakhstan’s economy. Over 3,900 companies from 80+ countries, including the USA, the UK, China,  Turkiye, the Republic of Korea, Singapore, and others, are registered within the AIFC’s jurisdiction. www.aifc.kz   

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