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.
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.
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
Total Project Cost
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
38 Dostyk Ave., BC Kendala, 050010, Almaty, Kazakhstan
PSD last updated
01 Dec 2021
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Independent Project Accountability Mechanism (IPAM)
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