ASTANA, Kazakhstan, December 22. Sustainable Fitch has assigned Kazakhstan's National Management Holding Baiterek JSC (Baiterek) an ESG Entity Rating of ‘3’ and an entity score of 57, Trend reports.
The rating reflects the company’s sustainability strategy and initiatives, contributing to Kazakhstan’s sustainable economic development; incorporation of ESG considerations in financing activities; and good social safeguards and governance practices.
Baiterek is a state-owned integrated development institution with eight subsidiaries with a wide range of economic activities, supporting micro, small, medium and large businesses; export operations; venture businesses; agriculture; and housing finance.
Sustainable Fitch positively views the group’s focus on social impact, with SME financing by subsidiaries such as Qazaqstan Investment Corporation JSC (QIC), Damu Entrepreneurship Development Fund JSC (Damu) and Bereke Bank JSC; offering housing programs, including for vulnerable populations, by Housing Construction Savings Bank Otbasy Bank JSC and Kazakhstan Housing Company JSC; and promoting processing sectors’ exports by KazakhExport EIC JSC.
According to the Sustainable Fitch, the rating also positively captures the inclusion of green financing in the portfolio by subsidiaries such as Development Bank of Kazakhstan JSC, Damu, QIC and Agrarian Credit Corporation JSC; however, the overall balance of such financing was limited at end-2022.
The rating is pressured by some subsidiaries’ exposure to high-emitting sectors. Baiterek’s financing policy considers ESG aspects and excludes some controversial sectors, though the scope of exclusions is limited.
