AIX cancels initial fee for ESG bonds this year

The Astana International Exchange (AIX) has launched a program for public ESG bonds, which cancels the initial fee for primary listing and admission for bonds issued this year, the AIX said in a statement.

Moreover, the AIX has decided to cut down the annual listing fee for public ESG bonds from the standard $10,000 to $1,000.

«ESG is one of the key areas that AIX strives to develop and wants to be associated with. The new initiative is driven by our intention to enable ESG-focused companies to raise funds they need to invest in projects linked to sustainable development at a lower cost,» said Assel Mukazhanova, acting CEO of the AIX.

Environmental, Social and Governance (ESG) bonds are aimed at financing socially important projects and projects related to environmental protection. These are green, social and other bonds issued for financing sustainable development projects.

In 2022, the global market of ESG bonds reported a 20% decline for the first time in its history. However, in Kazakhstan, the amount of new ESG bonds rose in 2022 by 14%, which was a record high over the previous three years, when ESG bonds appeared in the country. Kazakhstani investors were less interested in ESG bonds when the regulator tightened its monetary policy, but when the situation gets better, they usually show more interest in these securities than any others.