Project description
and objectives:
|
The proposed project is an equity investment for the purchase of up to 25% of
the capital of Inexim Bank (IB) in the Kyrgyz Republic through participation
in the planned capital increase. The Bank will invest alongside Temir Bank
Kazakhstan (the Sponsor), which will acquire a 46% stake in Inexim Bank
through the acquisition of existing shares and participation in the capital
increase.
The project is intended to (i) support Inexim Bank's capitalisation and
further growth and development of its retail and SME operations; (ii) assist
Inexim Bank's institutional building and strengthening of corporate
governance; and (iii) promote regional co-operation between Kazakh and Kyrgyz
banks.
|
Transition impact:
|
The EBRD's and Temir Bank's investment in Inexim Bank are expected to send a
message to the market and international investors in the country about the
potential of the local economy and banking sector. The investment by Temir is
one of the first cross-border banking acquisitions in Central Asia fostering
regional co-operation. The project will also provide indirect term financing
to Kyrgyz companies, mostly SMEs, which are otherwise severely restricted in
their access to term finance.
|
The client:
|
Inexim Bank is the sixth largest Kyrgyz Bank with assets of KGS 376 million
($8.2 million) and capital of KGS 100 million ($2.2 million) at 2002 year-end.
The bank operates mostly through its head office in Bishkek, the capital of
the Kyrgyz Republic, and a recently opened branch in Osh, the second largest
city in the country. Inexim Bank is focusing on providing a wide range of
products to its customers and finds its strongest niche in the retail and SME
segments.
|
EBRD finance:
|
Up to KGS 57.5 million equity investment.
|
Total project cost:
|
KGS 130 million approximately, which includes Temir Bank's investment in IB's
capital increase.
|
Environmental impact:
|
Inexim Bank will continue to carry out its operations in accordance with
EBRD's Environmental Procedures for Local Banks across the full range of its
operations. In implementing these procedures, Inexim Bank requires its
borrowers to comply, at a minimum, with national health, safety and
environmental requirements.
|
Technical
cooperation:
|
None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Ruslan Boronbaev, Deputy Chairman of the Board
Ruslanb@ineximbank.com
57,
K.Akiev str
Bishkek, 720001
Kyrgyz republic
|
EBRD contact:
|
Tatyana Tyo, Operation Leader: tyot@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
