Asian Development Bank issues green bonds in tenge

Investments in ecology! The first green bonds make the first funds. Almost US$32 million was attracted by the Asian Development Bank within the shares put up for auction that are quoted on the Kazakhstan Stock Exchange. This funding will be used to finance environmental projects in the fight against climate change in Kazakhstan.

“So, ADB issued two green bonds simultaneously, because we are financing two different solar power projects with the net proceeds of the issues. And the projects themselves have different characteristics, i.e. interest payment rates and maturities. The green bonds themselves carry semi-annual coupons of 10.12 percent for the October 22 maturity, which was sized at 3.8 billion tenge, and 10.10 percent for the January 23 maturity, which was sized at 10 billion tenge,” said Jonathan P. Grosvenor, Head of ADB Treasury Department.

Experts said that by issuing green bonds in local currency, the financial institute supports the UN Sustainable Development Goals and contributes to the development of the Kazakh capital market at the same time. However, the main aspect of such an arrangement is perhaps the care for the environment. Therefore, ADB’s climate change program has an integrated approach for addressing climate change mitigation and adaptation across five priority areas.

“1) scaling up clean energy, 2) promoting sustainable transport and urban development, 3) managing land use and forests for carbon sequestration, 4) building climate resilience and 5) strengthening related policies, governance and institutions, usually with a public sector. ADB primarily provides financing, grants and expert technical assistance,” added Grosvenor.

Among many projects are two Kazakh projects. The ADB allocated money for two startups on the construction of solar power plants with a capacity of up to 100 megawatts in our country. In general, the Asian Development Bank has already issued green bonds worth more than US$8 billion in 11 currencies, including tenge.