Project description
and objectives:
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In 2000 EBRD approved a USD 1.4 million (Euro 1.6 million) investment to
establish a greenfield commercial bank in the Kyrgyz Republic, with an initial
business focus on commercial and project term finance, trade finance,
short-term working capital and corporate deposits. Other founders of KICB are
Aga Khan Fund for Economic Development (with 30%) as the principal
shareholder, International Finance Corporation (20%), Deutsche
Entwicklungsgesellschaft (20%) and the Kyrgyz Government (10%).
EBRD is now considering investing USD 300,000 (Euro 240,000) as part of a
pro-rata capital increase. The proposed capital increase will facilitate
KICB’s expansion into retail banking and enhance KICB’s long term
sustainability.
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Transition impact:
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The project supports an increase in the private sector financing available
through the banking system and facilitates new investments. The introduction
of term lending and other corporate services demonstrates to the existing
local banks the potential in this area.
The presence of the EBRD and other institutional shareholders encourages
other bank investors into the market.
The development of skills in the local management team creates a core pool of
expertise in the banking system, which helps in time to improve the level of
skills in other banks.
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The client:
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KICB is the fifth largest private bank in the Kyrgyz Republic by total assets,
with 6.5% of total banking sector assets and 9.6% of net loans.
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EBRD finance:
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The initial investment of USD 1.4 million was disbursed in June 2001. The
proposed capital increase is expected to occur in December 2006.
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Total project cost:
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USD 1.7 million (including capital increase)
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Environmental impact:
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KICB is already implementing environmental procedures satisfactory to the
EBRD. KICB does not finance activities listed on the EBRD’s environmental
exclusion list and submits environmental report to the EBRD annually.
In relation to the capital increase, KICB will be required to continue to
implement the procedures across all its operations, to report annually on
environment, health and safety matters to the EBRD.
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Technical
cooperation:
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USD 3.0 million, allocated from Japan, funded the start-up costs of KICB and
the costs of expatriate management and banking experts for the first three
years.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Bektur Aliev, KICB Chief Operations Officer, email: bektura@kicb.net
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EBRD contact:
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Kanat Jousoupbekov, Operation Leader: jousoupk@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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