Green investments are one of the key directions for the development of the Astana International Financial Centre (AIFC). The Centre forms a single platform where any eco-friendly project will be able to find its investor and find support. This work is handled by the Department of "green" finance, headed by Asel Nurakhmetova.
Department has done a great job for two years. Since the launch, bilateral meetings with potential investors have been held - large investment funds and banks. Among them - the European Bank for Reconstruction and Development, the Asian Development Bank, as well as commercial banks.
An agreement on consulting the "green" projects has been reached. Foreign and domestic companies are ready to render assistance for underwriting services (guaranteeing the issuer of shares or other securities to be placed on the market). Consulting companies of “Big four” and Kazakhstan Investment Funds express the initiative to actively accompany the process, starting from the moment of bond issue, and are ready to act as professional participants in the market. The largest international organizations, such as the United Nations Development Program (UNDP), the United Nations Environment Program (UNEP) are ready to provide project support - the preparation of concepts, strategies, and other policy documents.
Close cooperation has been established with the Foreign Investors' Council under the President of the Republic of Kazakhstan, which includes 35 large foreign companies. Despite the fact that most of them prefer to invest in traditional industries (chemistry, oil, coal), some of them switch to "green" rails. During the meeting of the Council in June 2016, the members of the Council spoke in favor of developing the "green" financial system as a whole.
At the state level, the AIFC closely interacts with the profile ministries in the matters of issuing sovereign bonds and state guarantees. At the same time, small and medium-sized businesses are turning to the AIFC: Kazakhstan factories for recycling waste and producing “green” products. Also, large industrial enterprises contact us with the projects of renewable energy sources and energy efficiency. Each project undergoes thorough review in all instances on the issue of profitability and efficiency.
"We are now looking for a project in order to issue bonds for that. The rest of the process is built: we have all the procedural documents and potential investors. During the session "Green finances. How has the paradigm of investment changed?" at the Astana Economic Forum (Global Challenges Summit) a good term was used - "bankable". The project should be "returnable", potentially sustainable and meet all the requirements of banks and other stakeholders. Banks also check projects for affiliation and conduct a "due diligence" procedure", Asel Nurakhmetova pointed out.
Issues of "green" investments will be discussed at the ASTANA FINANCE DAYS conference in the framework of the Green Growth Forum, which will be held on July 3-4.