The first green loan was approved in Kazakhstan with the full support of the AIFC Green Finance Centre Ltd.
The Eurasian Development Bank and “Batys Transit” JSC signed a loan agreement in the amount of 3.6 billion tenge.
Nur-Sultan, September 20, 2021. The Eurasian Development Bank (EDB) and “Batys Transit” JSC signed a loan agreement to finance the construction and operation of street lighting networks in the city of Atyrau. This is the 4th stage of the general PPP project for lighting streets and highways in the Atyrau region. The length of the new section is 148,525 meters. The project cost is 4.6 billion tenge.
The 2nd and 3rd stages of the project have already been implemented and were also funded by the EDB. In September 2021, for the project “Construction of street lighting networks in the city of Atyrau”, EDB became the winner of the prestigious international award Environmental Finance’s 2021 IMPACT Awards in the “Energy industry” category.
The AIFC Green Finance Centre (a subsidiary of the Bank and AIFC Administration JSC) provided project support and developed internal documents of “Batys Transit” JSC, including Green Finance Framework. According to an external review developed by the consulting agency “Green Investment Group Kazakhstan”, the specified policy of the borrower fully complies with the LMA (Loan Market Association) Principles of “green” lending and LSTA (Loan Syndications and Trading Association).
The implementation of each of the project stages allows to reduce the number of road accidents (by 44% – based on the results of the 2nd and 3rd stages), the specific weight of crimes (by 0.5% – based on the results of the 2nd and 3rd stages), the cost of energy consumption of street lighting networks (by 80% – based on the results of the 2nd and 3rd stages), maintenance costs (by 36% – based on the results of the 2nd and 3rd stages), CO2 emissions (by 0.6828 tons/year – based on the results of the 2nd and 3rd stages).
“The project is being implemented in the priority sector for the Bank – energy with the use of a public-private partnership mechanism. The Borrower’s PPP projects have significant socio-economic effects for the development of the Atyrau region of the Republic of Kazakhstan, as well as a positive impact on the environmental situation in the region, which is confirmed by the report of an independent consultant and the receipt of a prestigious international award in the field of ecology,” said Amangeldy Isenov, Deputy Chairman of the EDB Board.
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The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For 15 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB’s charter capital totals US $7 billion. The EDB’s portfolio mainly consists of projects with an integration effect in the areas of transport infrastructure, digitalisation, green energy, agriculture, industry, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
“Batys Transit” JSC was established in November 2005 in accordance with the Decree of the Government of the Republic of Kazakhstan No. 1008 dated October 7, 2005 in order to implement the project “Construction of an interregional power transmission line North Kazakhstan — Aktobe region”. The shareholders of “Batys Transit” JSC are “KEGOC” JSC and “Mechenergostroy” LLP.
More detailed information about the issuer is available on the website http://bttr.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).
