Project description
and objectives:
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The operation consists of an equity investment in 21.1% of newly issued
shares. The investment will support the development of a small independent
regional private Tajik bank in its endeavour to meet new minimum capital
requirements of US$ 5.0 million, as recently set out by the National Bank of
Tajikistan. It will also secure Eskhata Bank’s sustainable development and
growth, strengthening its operations, and enhancing its competitive position
in the region.
The project also aims at providing additional financing to support the
excellent performance of Eskhata Bank in micro and small enterprise (MSE)
lending under the Tajikistan MSE Finance Facility (TMSEF). A USD 2.5 million
senior loan will be provided to Eskhata Bank for onlending to MSEs nationwide.
The Bank’s investment will mobilise an investment by ShoreCap International, a
Chicago-based private equity fund seeking to take minority positions in
locally managed microfinance banks operating in transition economies. ShoreCap
International will invest alongside EBRD on pari-passu terms.
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Transition impact:
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The project’s transition impact will be most prominent in the following areas:
(1) support of a private bank committed to the principles of sound banking and
transparency, thus setting benchmark for standards of corporate governance;
(2) support of a regional bank headquartered outside of the capital city;
(3) enhancement of competition and promotion of financial intermediation;
(4) reinforcement of internal risk management systems and upgrading IT
platform of the bank;
(5) development of institutional efficiency, transference and dispersion of
skills; and (6) further increase of access to efficient and tailored finance
for MSEs in the country.
The ongoing capacity building programme under TMSEF will also strengthen
Eskhata credit skills and procedures by training dedicated MSE loan officers
and establishing MSE departments in most current and future branches/outlets
nationwide.
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The client:
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Eskhata Bank, a small privately owned bank headquartered in the city of
Khujand in the Northern Tajikistan. The bank is primarily focused on servicing
MSE clients and has been providing a strong competition to larger rivals
operating in the region.
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EBRD finance:
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Equity investment through acquisition of newly issued ordinary shares.
USD 2.5 million senior loan for MSE finance.
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Total project cost:
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USD 2,500,000 and equity investment amount.
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Environmental impact:
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The client complies with EBRD’s Environmental Procedures for Intermediated
Finance through Local Banks and for Micro and Small Loans, including
compliance with applicable national environmental, health and safety
requirements, adherence to the Environmental Exclusion and Referral List.
Submission of annual environmental reports to the Bank and nomination of an
officer responsible for environmental issues are part of the project covenants.
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Technical
cooperation:
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Institutional building consultants to be selected in connection with the
equity investment.
TA consultants for the MSE finance capacity building programme under TMSEF
have already been contracted. TA funds have been committed by USAID, the EU,
and the Early Transition Country Fund, as well as by DFID and SECO in the
initial phase.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr Khurshed Nasirov, CEO 135 Gagarin str 735700 Khujand city Tajikistan
Tel. +992 (342) 243945 Fax +992 (342) 267410
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EBRD contact:
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Bakhtiyor Mansurov, Operation Leader: mansurob@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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