Markets & Policy

First green bond issued on Kazakh exchange

The Asian Development Bank has added Kazakhstan to the list of nations where it is issuing bonds denominated in local currencies as an alternative for investors to having to use international lenders.

By

Max Hall

17 Nov 2020

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The Almaty-based Kazakhstan Stock Exchange has hosted its first green bond. | Image: seojob/Pixabay

With the International Renewable Energy Agency having recently stressed the need to secure institutional investor cash for renewables, the Asian Development Bank (ADB) today announced the issue of the first green bond on the Kazakhstan Stock Exchange.

The multilateral lender raised KZT13.96 billion ($32.6 million) with two 24-month bonds issued to finance climate change adaptation and mitigation projects in the country.

The bonds – a KZT10.09 billion, 10.1% instrument and a KZT3.87 billion, 10.12% investment – were snapped up by Kazakh banks and institutional investors, according to the ADB.

The bond issue was arranged by Kazakh-based merchant banking group Tengri Partners.

The ADB said it has provided $42.5 billion of clean energy finance from 2009-19 and has issued $8.2 billion worth of green bonds in 11 currencies. The development lender said it issued its first Kazakhstani tenge-denominated – non-green – bond in 2007 and issued KZT45.8 billion in the nation last year.

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