Development Bank of Kazakhstan Green and Cross-Border Connectivity On-Lending Facility

The MCDF grant will assist the Development Bank of Kazakhstan (DBK) in enhancing and implementing an environmental and social management system (ESMS). The enhanced ESMS will apply to a non-sovereign backed on lending facility being considered by the Asian Infrastructure Investment Bank (AIIB). DBK is a public bank with a policy mandate to promote Kazakhstan’s sustainable economic development by investing in non-extractive sectors and providing long-term financing in line with the strategic directions of the Government of Kazakhstan.

The grant will support efforts to enhance and implement revised policies and procedures at DBK to meet International Financial Institution standards, as well as provide second party opinion to certify the alignment of subprojects with DBK’s Green Bond Framework. The grant will also support work to apply environmental and social (E&S) standards to the on-lending facility’s subprojects and facilitate knowledge sharing and dissemination of best practices to Kazakhstan’s wider banking sector.

The MCDF grant will help enhance DBK’s ESMS, support E&S due diligence that complies with standards required for AIIB financing, and promote E&S standards among Kazakhstan’s financial institutions. The on-lending facility will support subprojects in the green infrastructure and cross-border connectivity sectors.