Project description
and objectives:
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The proposed Facility aims to build on the positive experience of the first
Framework by increasing the amount and variety of medium-term funding
available to non-bank micro-finance institutions (MFIs) in the Early
Transition Countries (ETCs) of Armenia, Azerbaijan, Georgia, Kyrgyz Republic,
Moldova, Tajikistan and Uzbekistan. The Facility targets increased access to
finance by the smallest enterprises in the ETCs. This USD 25 million Framework
will supplement the existing Framework and include: Senior loans of up to USD
5 million to non-bank MFIs for on-lending; Guarantees for on-lending in local
currency to selected MFIs; Subordinated loans; and Equity.
The overall objective of this Framework is to increase financing for micro
and small enterprises in the regions and to assist the non-bank MFIs in their
commercialisation process supporting their long term sustainability.
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Sub-projects:
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- ETC Non-Bank MFI Framework II - Kompanion
- ETC Non-Bank MFI Framework II - MDTM Microinvest
- ETC Non-Bank MFI Framework II - Microinvest
- ETC Non-Bank MFI Framework II - FINCA (Azerbaijan)
- ETC Non-Bank MFI Framework II - Constanta
- ETC Non-Bank MFI Framework II - WV Credo
- ETC Non-Bank MFI Framework II - IMON
- ETC Non-bank MFI Framework II - Bai Tushum
- ETC Non-Bank MFI Framework II - Frontiers
- ETC Non-Bank MFI F/W II - Vision Fund AzerCredit LLC
- ETC Non-Bank MFI Framework II - Credagro
- ETC Non-Bank MFI Framework II - Norwegian Microcredit LLC
- ETC Non-Bank MFI Framework II - Bai Tushum
- ETCF Non-Bank MFI Framework II - Kompanion II
- ETC Non-Bank MFI F/W II - IMON (Debt III)
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Transition impact:
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The transition impact is expected to be high to excellent. The project will
have two main forms of transition impact. Firstly, it will contribute to the
strengthening and commercialisation of financially viable non-bank MFIs.
Secondly, it will increase the availability of finance to those
micro-enterprises that would not normally be target borrowers for commercial
banks.
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The client:
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Regulated, well-established non-bank MFIs, legally incorporated in the ETCs
will be eligible for financing under this Framework.
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EBRD finance:
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The Framework is for USD 25 million with individual transactions not exceeding
USD 5 million. Co-financing funds will be sought on a case by case basis.
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Total project cost:
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USD 25 million.
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Environmental impact:
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Screened FI. The non-bank micro-finance institutions (MFIs) will be required
to comply with the EBRD’s Environmental Procedures for Small and Micro Loans
which require adherence to the EBRD’s Environmental Exclusion and Referral
List. The MFIs must ensure that borrowers are compliant with relevant
national regulations and standards for environment, health and safety and
submit Annual Environmental Reports to the EBRD.
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Technical
cooperation:
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TC funding in the amount of USD 1.11 million was and to date, USD 0.6 million
has been provided by the ETC Multi-donor Fund.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Sabina Dziurman
E-mail: dziurmans@ebrd.com
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EBRD contact:
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Tony Myron, Operation Leader: myront@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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