ADB Approves $173.6M Loan to Boost Women’s Access to Housing and Launch Green Mortgages in Kazakhstan

The Asian Development Bank (ADB) has approved a 90 billion tenge ($173.6 million) loan to Otbasy Bank JSC, marking a major push to expand affordable housing finance for women while introducing green mortgage products aimed at improving energy efficiency across Kazakhstan's housing sector.

The initiative—titled the Promoting Inclusive and Green Housing Finance Project—is expected to benefit more than 2,000 low- to moderate-income households, with a strong emphasis on women borrowers who continue to face structural barriers in accessing home financing.

Tackling Gender Gaps in Housing Finance

ADB officials highlighted that the project builds on the success of the Umai Program, which demonstrated how targeted mortgage access can significantly improve women's economic participation and financial independence.

"Access to affordable housing finance can be transformative for women," said ADB Country Director for Kazakhstan Utsav Kumar. "This project not only expands those opportunities but also integrates sustainability into the housing market."

Despite women making up over 50% of Kazakhstan's population, they earn on average 25% less than men, limiting their ability to secure traditional mortgages and accumulate assets. This gender income gap has long been identified as a key barrier to housing ownership and financial security.

By prioritising women borrowers, the new programme aims to:

• Increase female homeownership rates

• Enhance financial inclusion and asset-building

• Support long-term economic empowerment

Green Mortgages: A New Frontier in Sustainable Housing

A central innovation of the project is the introduction of a green mortgage finance framework, designed to incentivise the construction and purchase of energy-efficient homes.

Kazakhstan's housing stock remains highly energy-intensive, with more than 80% of homes lacking modern energy efficiency standards. This results in higher utility costs for households and increased environmental impact.

The green mortgage component will:

• Encourage energy-efficient building design and retrofits

• Reduce household energy consumption and costs

• Support Kazakhstan's climate and sustainability goals

ADB officials say the framework is intended to serve as a scalable model for the broader banking sector, potentially transforming how housing finance is structured nationwide.

Technical Assistance to Strengthen Climate Risk Capacity

In addition to the loan, ADB has approved $500,000 in technical assistance, co-financed with Otbasy Bank, to enhance the bank's institutional capacity.

This support will focus on:

• Developing systems to assess and mitigate climate-related financial risks

• Integrating environmental, social, and governance (ESG) standards into lending operations

• Building expertise in sustainable housing finance

This dual approach—combining financing with institutional strengthening—is designed to ensure long-term impact and resilience in the housing finance system.

Expanding Access While Driving Systemic Change

The project reflects a broader shift in development finance toward integrating inclusion and sustainability into core economic sectors.

By aligning gender-focused lending with climate-conscious housing policies, the initiative addresses two critical challenges simultaneously:

• Inequality in access to finance

• Environmental inefficiencies in infrastructure

Experts note that such integrated models are increasingly essential as countries seek to balance economic growth with social equity and climate commitments.

ADB's Long-Term Engagement in Kazakhstan

Kazakhstan has been a member of ADB since 1994, with the institution committing over $8 billion in loans, grants, and technical assistance across sectors including:

• Public sector management

• Transport and infrastructure

• Energy and climate initiatives

• Financial sector development

The latest housing finance project adds to ADB's growing portfolio of initiatives aimed at fostering inclusive and sustainable development in Central Asia.

Looking Ahead

The success of the programme will depend on effective implementation, uptake among eligible households, and the ability of financial institutions to scale green mortgage products.

If successful, the initiative could:

• Serve as a blueprint for gender-responsive housing finance

• Accelerate the transition to energy-efficient housing

• Strengthen Kazakhstan's financial and environmental resilience

ADB's $173.6 million investment signals a significant step toward reshaping Kazakhstan's housing market—making it more inclusive for women and more sustainable for the future.

By combining targeted financial access with green innovation, the project positions housing not just as a social need, but as a driver of economic empowerment and climate action.