An investment fund for development of the green economy will be established in Kazakhstan, tengrinews reports citing the press-service of Baiterek Holding.
"A trilateral Memorandum of Intention of Islamic Corporation for Development of Private Sector (ICD) and National Agency for Technological Development (a subsidiary of National Management Holding Baiterek) to become shareholders of Central Asia Renewable Energy Fund LP has been signed," the message says.
Baiterek Holding was the initiator of the deal and its one the main driver behind the new institution.
The new fund is being created with a mission of making 8-10-year invests into development of renewable and alternative energy sources. The target size of the fund is $50 million at the initial stage and $100 million at later stages.
The fund will finance projects only in Kazakhstan. "More than two-thirds of fund's core capital will be formed from private local and foreign investments, and the National Agency for Technological Development that represents the Kazakhstan Government in the fund will provide at least one third part of the core capital," the press-service reports.
According to the press-service, the fund's activity will be based on Islamic financing principles. ICD is also expected to provide consulting services and share its experience in projects structuring. The list of potential project has already been put together.
Baiterek Holding's participation in the fund is the company's contribution into development of green energy in Kazakhstan and the country’s preparation for holding the international exhibition EXPO-2017, the press-service summarized.
Islamic Corporation for Development of Privet Sector (ICD) is a multilateral finance institute for development that is part of the Islamic Development Bank (IDB) group. It was created to support economic development of ICD member- countries through provision of finance to private projects, stimulation of competition, attracting co-financiers for its projects and providing advice to governments and private sector groups on policies aimed at encouraging the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhancing the role of market economy.
Baiterek was found in May 2013, its main mission is to ensure financing of the State Industrialization Program and attract funding for implementation of the State Program of Accelerated Innovative and Industrial Development.
The Development Bank of Kazakhstan, Investment Fund of Kazakhstan, Residential Savings Bank, Kazakhstan Mortgage Company, KazExportGarant, Enterprise Development Fund Damu, National Agency for Technological Development, Guarantee Mortgage Fund of Kazakhstan, KazynaCapitalManagement and Distressed Assets Fund are members of the holding.