ALMATY - Halyk Bank has become the first commercial bank in Kazakhstan to issue green bonds, marking a significant move in the nation's efforts towards economic sustainability. The bank completed the placement of these bonds on the Kazakhstan Stock Exchange (KASE) on Monday, totaling 20 billion Kazakhstani tenge (KZT) with a three-year maturity.
The proceeds from these green bonds will finance projects aimed at efficient natural resource use, reducing environmental impact, and addressing climate change effects, in alignment with the UN's Sustainable Development Goals. The bank's Green Finance Framework, in compliance with Kazakhstan's Taxonomy of Green Projects and the International Capital Markets Association's Green Bond Principles, will guide the funding of eligible projects.
Halyk Bank's CEO Umut Shayakhmetova expressed confidence in the bond issue, citing it as a testament to investor trust and an opportunity for the bank to contribute to Kazakhstan's sustainable development. Shayakhmetova highlighted the bank's history of sustainability initiatives, including joining the UN Global Compact and publishing an annual Sustainability report following international standards.
The bond issue was supported by Halyk Finance JSC as financial advisor and underwriter, while the Green Investment Group provided an independent assessment to ensure compliance with green bond criteria.
This issuance is part of Halyk Bank's broader commitment to environmental and social governance (ESG), reflected by its ESG rating upgrade to BBB by MSCI ESG Research in March 2024. The bank's involvement in projects like home gasification for vulnerable communities and financial literacy programs further demonstrates its dedication to sustainable practices.
Halyk Bank, established as a leading financial institution in Kazakhstan, offers a wide range of services and operates both locally and in neighboring countries. The bank's recent activities underscore its position as a pioneer in the region's shift towards green finance.
This news is based on a press release statement from Halyk Bank.
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