The Asian Development Bank (ADB), a multilateral institution based in the Philippines, recently mobilized KZT 14 billion (USD 27 million) to support the Housing and Construction Savings Bank of Kazakhstan, a state-controlled institution also known as Otbasy Bank, in issuing “affordable residential mortgage loans to women borrowers in rural areas.” ADB raised the funds through a bond issue to institutional investors in Kazakhstan. The bonds, which mature in 2030, pay an 11-percent coupon rate twice per year. Otbasy Bank is borrowing the newly raised funds from ADB with a guarantee from Kazakhstan’s Ministry of Finance. This is the second tranche of a partnership between the two banks that is expected to reach an aggregate volume of KZT 38 billion (USD 73 million).
Otbasy Bank, a unit of the government-owned bank Baiterek National Management Holding, aims to improve housing conditions in Kazakhstan by lending to customers partially based on the deposits that they maintain in the institution. These housing loans have terms of six to 25 years. As of 2021, the bank holds customer deposits of KTZ 1.0 trillion (USD 2.0 billion) and a loan portfolio of KZT 1.4 trillion (USD 2.7 billion).
Established in 1966, ADB is an international development finance institution headquartered in the city of Manila. The institution’s mission is to help its 68 member countries reduce poverty and otherwise improve the quality of life of Asia’s citizens. As of 2020, ADB has total assets of USD 32 billion, including a loan portfolio of USD 22 billion.
By Adhya Singh, Research Associate
Sources and Additional Resources
ADB press release
https://www.adb.org/news/adb-issues-second-gender-bond-kazakhstan
Otbasy homepage
https://hcsbk.kz/
About Promoting Gender Equality in Housing Finance Project
https://www.adb.org/projects/52334-001/main
ADB 2020 annual report
https://www.adb.org/sites/default/files/institutional-document/691766/adb-annual-report-2020.pdf
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