Today, Almaty Power Plants JSC (AlES) and the Eurasian Development Bank (EDB) signed an agreement for the joint implementation of Almaty CHP-3 reconstruction project.
The EDB has outlined plans to acquire sustainable development bonds (ESG) issued by AlES, specifically Sustainability-Linked Bonds (SLB). These debt securities are designated for financing environmental and social projects in support of the Almaty CHP-3 reconstruction initiative.
The ceremonial signing occurred at the Astana International Exchange (AIX) in Astana. The debt financing for the Almaty CHP-3 reconstruction project marks the initiation of AlES's inaugural bond program related to sustainable development, with a total nominal value of up to 236.8 billion tenge, as registered on the Astana International Financial Center Exchange.
Almasbi Kamalov, Managing Director for Economy and Finance of “Samruk-Energy” JSC, expressed that extensive efforts were invested in securing financing for the project. This included assessments of environmental impact based on international standards and evaluations of applicable technologies, considering global experiences. Samruk-Kazyna JSC and Samruk-Energy JSC prioritize the development of the Almaty agglomeration, with multiple crucial projects underway in the Almaty energy hub. These endeavors aim not only to enhance the region's energy potential and alleviate maneuverable power shortages but also to improve the city's ecological footprint.
Ruslan Dalenov, Deputy Chairman of the EDB Board, emphasized the bank's focus on mega projects like Almaty CHP-3 reconstruction. He highlighted the installation of modern, environmentally friendly combined cycle gas turbine units as a significant step in enhancing the environmental situation in Kazakhstan's largest city. This aligns with the principles of sustainable development that the Bank upholds. The EDB actively supports countries in achieving energy security through financing and grants for pre-project work, contributing to the development of new capital-raising mechanisms such as Sustainability-Linked Bonds.
The inaugural issuance of AlES's sustainable development bonds received support from the AIFC Green Finance Center, providing essential consulting support and an independent opinion on the bonds' compliance with sustainable development bond principles (Second Party Opinion).
Daniyar Kelbetov, Chairman of the Board of Directors of the AIFC Green Finance Center, underlined AIFC's commitment to introducing innovative financial instruments to attract investments in environmentally sustainable projects. Kazakhstan's pioneering launch of a market for Sustainability-Linked Bonds in Central Asia is seen as a significant contribution to global carbon footprint reduction goals.
Apart from the EDB, other development institutions and second-tier banks may emerge as potential investors in the project. Sky Bridge Invest JSC serves as the financial consultant and underwriter for the bond program's issuance and placement.
According to AIFC information, AlES SLB bonds are poised to become the largest issue of sustainable development bonds in Central Asia.
Asel Mukazhanova, Chairman of the Board of AIX, acknowledged the global shift wherein investors increasingly consider ESG criteria in their decision-making. AIX takes pride in participating in this trend by offering opportunities to invest in sustainable development through an array of accessible products.
The investment project, "Reconstruction of Almaty CHP-3 based on a combined cycle gas turbine unit with a capacity of 500 MW" is implemented by Samruk-Energy JSC, represented by its subsidiary – AlES. The initiative envisions a comprehensive refurbishment of the power plant, including capacity and maneuverability enhancements. The new CHP is designed to generate both electricity and heat. A pivotal aspect of the project involves installing up-to-date, environmentally friendly combined cycle power units that use natural gas, replacing outdated and depleted pulverized coal-fired equipment.