Development Bank of Kazakhstan to issue USD-15m green bond

The Development Bank of Kazakhstan (DBK) intends to launch a USD-15-million (EUR 13.7m) green bond at home in order to raise capital to bankroll the development of an unspecified renewable energy project.

The bank supporting the sustainable economic development of the Central Asian republic said on Wednesday that the issue is aligned with its environmental, social, and governance (ESG) programme and supports its commitment to finance green generation and environmental schemes. The proposed offering is due to be held on the Astana International Exchange.

The interest rate of the securities will be determined following a marketing campaign on the bourse.

Details about the renewable energy project that will benefit from the fresh proceeds were not available in the press statement.

Kazakhstan has set a goal for achieving net-zero greenhouse gas emissions by 2060. According to GlobalData, the country is set to reach 10.3% of electricity generation from renewables in 2030, thus slightly topping its original end-of-decade target but missing the revised one of 15%. The lack of flexible generation is seen as one the main challenges to advance the domestic renewables expansion.

(USD 1.0 = EUR 0.911)

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