Promoting Inclusive and Green Housing Finance (ADB-58135-001)

Countries
  • Kazakhstan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Kazakhstan - Otbasy Bank JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 17, 2024

Disclosed by Bank Jul 24, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project will promote affordable residential mortgage loans to women and the development and funding of benchmark green mortgage products in Kazakhstan via Otbasy Bank. This will enable them to target segments of the population that are significantly underserved in the market by the private sector by providing: (i) qualified women sub-borrowers with long-term, fixed rate subloans (mortgages) in local currency to acquire or renovate housing; and (ii) qualified low-to-moderate income population sub-borrowers with long-term, fixed rate subloans (green mortgages) in local currency to acquire green, energy efficient housing or for the renovation of existing housing to improve energy efficiency.

Kazakhstan faces the challenge of sustainable and affordable housing development and finance. There is a lack of affordable housing, low quality housing, limited access to land for construction, rising housing prices, and a lack of framework conditions for energy modernization of the old housing stock and the finance of green, energy efficient new housing. According to the Ministry of Industry and Infrastructure Development (MIID), more than 651,960 Kazakhstanis are on the waiting list for housing as of April 2024 under state programs. This number increases by about 10% yearly.

 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Environment: C
Involuntary Resettlement: C
Indigenous Peoples: C

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Loan (Ordinary capital resources): US$ 200.00 million

Grant (Technical Assistance Special Fund): US$ 500,000.00

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Government prioritizes housing finance and affordable housing development through various key strategic plans and has developed several housing programs. Those programs are implemented through Otbasy Bank that is fully owned by Baiterek Holding, a state holding company. Otbasy Bank has a mandate to provide mortgages for affordable housing to the low-to-moderate income and vulnerable population segments.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works