The European Bank for Reconstruction and Development (EBRD) is helping make Kazakhstan’s electrical grid more sustainable and reliable by investing in a local currency bond issued by the country’s transmission system operator, KEGOC.
The EBRD’s KZT 6 billion (€13 million) contribution will support KEGOC’s first floating TONIA-linked local currency bond, which will be listed on the Kazakhstan Stock Exchange (KASE). The investment will help KEGOC rehabilitate its overhead transmission lines in the Aktobe, Western and Sarbay networks.
The project will help reduce transmission losses in the grid and allow KEGOC to accommodate the large-scale renewable energy integration measures planned as part of Kazakhstan’s decarbonisation strategy.
Technical assistance provided by the Climate Investment Funds will help KEGOC integrate the growing share of renewable energy into the national power system.
As part of the project, KEGOC plans to develop a new training programme that will enable students to gain digital skills in the power sector. This will increase young people’s access to market-relevant skills and employment opportunities.
The tenge overnight index average rate (TONIA) was developed by KASE, the National Bank of Kazakhstan, the EBRD and the country’s leading financial institutions. This benchmark for local currency lending instruments is also used by local investors when issuing bonds.
With more than €10 billion invested in the country to date through 304 projects, Kazakhstan benefits from the EBRD’s largest and longest-running banking operation in Central Asia.