GEFF Kazakhstan - Shinhan Bank EE Loan

Location:

Kazakhstan

Project number:

52817

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

21 Sep 2021

Status:

Approved

PSD disclosed:

01 Dec 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of a senior loan of up to US$ 5m in KZT equivalent to Shinhan Bank Kazakhstan for on-lending to eligible private sector sub-borrowers for energy and resource efficiency projects under the GEFF Kazakhstan.

Transition Impact

ETI score: 70

Facilitating faster market uptake and increased penetration of high performance green technologies that go beyond the country's current standards. The project will also be one of the first facilities to support gender-responsive climate change mitigation and adaptation investments.

Client Information

SHINHAN BANK KAZAKHSTAN JSC

Shinhan Bank Kazakhstan (SBK) is a private foreign-owned bank in Kazakhstan with total assets of US$ 192 million as of end March 2021.

EBRD Finance Summary

USD 5,000,000.00

Total Project Cost

USD 5,000,000.00

Additionality

Innovative financing structures and instruments. The EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance ("ESG") standards and climate and ESG risk considerations into the financing structure (e.g. adjusting loan pricing and level of concessionality to reflect the level of climate risk and positive climate benefits like greenhouse gas ["GHG"] reductions, climate resilience benefits and compliance with higher standards of GET technologies).

Standard-setting: helping projects and clients achieve higher standards. Client makes use of EBRD expertise in energy and resource efficiency and climate resilience financing via provision of energy and climate audits, minimum performance standards of technologies, climate-related strategies and policies, monitoring, reporting and verification (MRV) systems etc. 

Financing structure. The EBRD offers local currency financing on terms not readily available in the market. 

Knowledge, innovation and capacity building - The EBRD provides expertise, innovation, knowledge and capabilities that are material to the timely realisation of the projects' objectives, including support to strengthen the capacity of the client.

Environmental and Social Summary

Categorised FI (2019 ESP). SBK is an existing client whose past performance and annual environmental and social (E&S) reporting for existing exposures has been satisfactory. SBK will need to comply with PRs 2, 4 & 9; continue to comply with the EBRD's Environmental and Social Procedures for Corporate-SME-Micro Loans; adhere to the updated the EBRD's Environmental and Social Exclusion List and the Referral List introduced with the ESP 2019; and submit Annual E&S Reports to the Bank. Additionally, all sub-loans will require to be complaint with the GEFF Policy Statement. SBK's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements.

Technical Cooperation and Grant Financing

SBK will benefit from TC support. The TC will help SBK to (i) identify the target customer segments for green investments, develop marketing and product strategies and prioritise internal resources for the new green financing opportunities and (ii) aid the SBK's sub-borrowers in structuring their sub-projects and preparing them for financing. Verification checks will ensure incentive payments are made only after sub-projects are completed in line with investment plans. The TC funds are provided by Austria. 

The operation will be supported with non-refundable co-investment grants for investment incentives to sub-borrowers in line with the levels and eligibility criteria presented in the Policy Statement.

Investment incentives are necessary to encourage Kazakh businesses to adopt green technologies and help early movers to prioritise energy efficiency projects, which, in turn, promote higher performance standards. The grant resources will be provided by the Global Environment Facility under the Reducing GHG Emissions through a Resource Efficiency Transformation Programme in Kazakhstan.

Company Contact Information

Vitaly Kim
vitaly.kim@shinhan.com
+7.727.356.96.03
www.shinhan.kz
38 Dostyk Ave., BC Kendala, 050010, Almaty, Kazakhstan

PSD last updated

01 Dec 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

Share this page: