The Development Bank of Kazakhstan has issued Debut Sustainability Eurobonds
With the backing of the Astana International Financial Centre (AIFC) and Green Finance Center, the Development Bank of Kazakhstan (DBK) has initiated its first-ever sustainability Eurobonds. The issuance amounted to 100 billion tenge ($222.7 million) with a maturity period of three years, facilitated through the Vienna Multilateral Trading System platform, as reported by the AIFC's press service on April 16.
This issuance marks a significant milestone as the first sustainability Eurobonds from the Commonwealth of Independent States (CIS) for a non-sovereign issuer in local currency throughout the entire history of Eurobond issuances by CIS entities.
The proceeds from these bonds will be earmarked for financing and refinancing projects that adhere to both green and social project criteria.
In addition to this issuance, the DBK also placed another issue worth $500 million, with a three-year circulation period and a coupon rate of 5.5% per annum. Remarkably, this issuance achieved the narrowest spread to the United States Treasuries for a benchmark issue of a BBB-rated financial institution from emerging markets of all time.
As part of Kazakhstan's inaugural international issuance of sustainability Eurobonds in local currency, Sustainable Fitch and the AIFC Green Finance Center provided a positive external assessment, confirming compliance with the sustainable development bond standards of the International Capital Markets Association.(Source:astanatimes)
