Project description
and objectives:
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The proposed project is a facility of USD 7 million, of which USD 2 million
would be provided for on-lending to private micro, small and medium sized
enterprises (MSMEs) throughout the Kyrgyz Republic. USD 5 million will be made
available so that EBRD can take an equity stake, alongside a suitable
strategic investor at KAFC’s privatisation.
The project objectives are to:
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Support rural micro and small enterprises in Kyrgyzstan;
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Prepare KAFC transformation into a bank; and
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Support the privatisation of KAFC
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Transition impact:
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Transition impact will result from the privatisation of KAFC and its
transformation from a non-bank financial institution into a fully licensed
bank, with a will focus on rural MSME financing. It will also broaden and
deepen EBRD’s outreach by providing on-lending funds for some of the smallest
borrowers in remote parts of the country.
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The client:
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KAFC is the most significant provider of rural finance in the country and the
largest financial institution. It was established in 1996 with the support of
the World Bank and is currently, wholly state-owned. The organisation
currently serves over 33,500 borrowers from 58 outlets.
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EBRD finance:
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The facility will provide KAFC with a senior term loan of USD 2 million for
on-lending to private MSMEs, and a USD 5 million loan loan with a convertible
feature.
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Total project cost:
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USD 7 million.
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Environmental impact:
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Screened FI. KAFC will be required to comply with EBRD’s Environmental
Procedures for Small and Micro Loans and the Environmental Procedures for
Local banks which require adherence to the Bank’s Environmental Exclusion and
Referral List, compliance with the applicable national environmental, health
and safety requirements and submission of an Annual Environmental Report to
the Bank.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mrs Baktygul Jeenbaeva, Executive Director
E-mail: kafc@infotel.kg
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EBRD contact:
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Ruslan Kurmanbekov, Operation Leader: kurmanbr@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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