Press room

Nur-Sultan, November 30, 2021. Halyk Bank (JSC Halyk Savings Bank of Kazakhstan) has become the first second-tier bank in Kazakhstan to finance a “green” loan to LLP «KAZ GREEN ENERGY». The company is implementing a project for the construction of a bioelectric power plant with a capacity of 5MW in the Karaganda region, Zhezkazgan city, Kengir rural area. This project was reviewed by an independent party – the AIFC Green Finance Centre.

“The Bank and its subsidiaries actively financing and supporting the clients and partners projects related to the green economy. It is very important that for the first time in Kazakhstan, the “green” project received an independent assessment. As part of the new development strategy of the Halyk Group, we intend to continue to pay special attention to the development of projects that correspond to the execution of key tasks within the ESG framework of the Bank and the development of specialized financial products” – said Umut Shayakhmetova, Chairman of the Management Board of Halyk Bank.

The project aims for the creation of a complex for the reception and processing of solid household waste (hereinafter – SHW) of the population (primarily biomass) and their transformation into electricity. The construction of the power plant is based on the use of a unique innovative technology for processing SHW using a pyrolysis thermochemical system to obtain the main product - biogas with subsequent electricity generation.

LLP «KAZ GREEN ENERGY», which is part of the “Kazakhmys Holding” Fuel and Energy Complex, has started receiving funds from Halyk Bank as part of the “green” loan of 7.9 billion tenge. The AIFC Green Finance Centre has developed an external assessment, according to which the internal documents of LLP «KAZ GREEN ENERGY», including the Policy in the field of green financing, fully comply with the Principles of Green Lending LMA (Loan Market Principles) and LSTA (Loan Syndications and Trading Association).

Work is underway to include this “green” loan in the database of the international analytical platform Environmental Finance.

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According to the BloombergNEF research service, in 2020 the amount of debt raised for the purposes of sustainable development amounted to $732.1 billion in the world, which is 29% more than 2019 dynamics. Social and green bonds were the most popular. However, in parallel with the bond market, the green loan market is also rapidly developing, which accounted for $80.3 billion of last year’s growth.

In order to form a qualitative growth of the green lending market in 2018, the Credit Market Association, which unites over 700 participants of the European lending market, has developed the Principles of Green Loans. In accordance with these principles, the loan agreement must specify that the funds raised will be used to finance environmental projects, and the borrower must submit documents confirming that the project belongs to the green category. Accounting for such loans is segregated from other borrowings so that the funds are not used for other purposes. Moreover, the borrower must regularly disclose information about the funds used to its’ creditors.

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Halyk Bank of Kazakhstan (HALYK Bank) is a leading financial group in Kazakhstan operating in various segments, including retail, SME and corporate banking services, insurance, leasing, brokerage services and asset management. The Bank has been listed on the Kazakhstan Stock Exchange since 1998, on the London Stock Exchange since 2006 and on the Astana International Exchange since October 2019.

With assets in the amount of KZT 11,284.5 billion as of September 30, 2021, the Bank is the leading credit institution in Kazakhstan. The Bank has the largest customer base and branch network – 519 branches and branches across the country. The Bank also operates in Georgia, Kyrgyzstan, Russia and Uzbekistan.

PR-service of Halyk Bank

tel. +7 727 330 17 19, / pr@halykbank.kz | www.halykbank.kz

«KAZ GREEN ENERGY» LLP is a part of the Kazakhmys Holding fuel and energy complex, the main activity is the implementation of projects in the field of renewable energy sources, established in 2014. According to the strategic plan, the construction of green energy facilities with a total capacity of 350 MW is envisaged. The first implemented project of KAZAKHMYS Group is the Kengir Solar Power Plant with a capacity of 10 MW.

«KAZ GREEN ENERGY» LLP

tel. +7 7212 559939, | info@kge.kz

The AIFC Green Finance Centre is an AIFC Organisation created to enable the development of green finance in Kazakhstan and Central Asia. The main goal is to bring investments to sustainable economy through trending financial instruments, such as green and social bonds. In addition to that, the AIFC Green Finance Centre, being a regional think-tank, provides strategic and business consulting in green finance and sustainable development to Governments, quasi-state organisations and entrepreneurs. The Centre provides initial assistance to potential issuers, investors and market players on preparations for the issuance of green bonds on the AIFC Exchange (Astana International Exchange).