Damu Fund lists first green bonds on Kazakhstan’s AIX in the amount of US$478,469
The trend to invest in green bonds was supported in Kazakhstan. The Damu Entrepreneurship Development Fund (Damu Fund) has registered and issued green finance bonds on AIX (Astana International Exchange, which is a part of the Astana International Financial Center). Under the agreement with the United Nations Development Program (UNDP), the Damu Fund invested 200 million tenge (US$478,469) with a maturity of 36 months. The coupon rate is 11.75 percent. This placement is the first listing of green bonds in Kazakhstan, the press office of the AIX reported. Now the money will be placed in second-tier banks and microfinance organizations. These funds will be used to lend to small and medium-sized enterprises (SMEs) implementing small-scale investment projects for renewable energy sources (RES). In addition, part of the coupon rate will be subsidized by the UNDP. The organization will also provide technical support for projects appraisal and selection.
“We are delighted to welcome our first green bond issuer. We hope that the listing of securities of the Damu Fund in compliance with AIX’s Green Bond Rules will serve as an example for other organizations that need to raise funds to develop a green economy,” CEO of AIX Tim Bennett said.
Chairperson of the Damu Fund Gaukhar Buribayeva emphasized that the listing of green bonds on the AIX was an important step for the Damu Fund in the implementation of the strategy of ‘green’ financing and support of private businesses.
“We hope that this issuance will serve as an incentive for the development and financing of RES and energy efficiency projects. If there is a demand for ‘green’ financing the Damu Fund will be happy to consider the possibility of additional issuance of green bonds to invest in such projects,” Buribayeva said.