Eurasian Development Bank Issues Bonds to Finance Modernization of Almaty CHPP-3

The Eurasian Development Bank (EDB) has issued three-year bonds worth 50 billion tenge (US$100.4 million) on the Kazakhstan Stock Exchange (KASE) to fund the modernization of Almaty Combined Heat and Power Plant-3 (CHPP-3), according to the bank.

The project involves transitioning CHPP-3 from coal to natural gas, significantly reducing harmful emissions, improving air quality, and enhancing power supply reliability in Almaty, The Caspian Post reports, citing Kazakh media.

The bond issue attracted high investor interest, with bids exceeding the offer by nine billion tenge (US$18 million).

The proceeds will finance the reconstruction of Samruk Energy, the parent company of Almaty Electric Power Plants (AlES). A key component is the installation of an over 500-megawatt combined-cycle gas turbine unit.

The project builds on the EDB’s 2023 agreement with AlES to support its transition from coal to gas-fired generation. It also continues the bank’s collaboration with AlES and the Astana International Financial Centre (AIFC), which previously registered a 236.8 billion tenge (US$475.9 million) sustainable development bond program.