The EBRD is boosting the levels of financial intermediation in Tajikistan with an equity investment in one of the leading lenders in the country.
The EBRD is acquiring a stake of 25 percent + 1 share in Agroinvestbank, the second largest commercial bank in Tajikistan, for up to 50 million Tajik Somoni ($12 million equivalent).
Agroinvestbank is one of the leading providers of finance to micro, small and medium-sized enterprises and the agricultural sector in Tajikistan. Through its substantial rural network it reaches out beyond the capital Dushanbe, to areas where access to finance remains difficult for private entrepreneurs.
The EBRD’s investment will strengthen the capital base of Agroinvestbank and will support its growth and further development. This will also enable the bank to increase its provision of loans to local enterprises.
The EBRD investment in Agroinvestbank is complemented by $1.5 million in grant funds from the Bank’ Early Transition Countries Fund for institution building and the strengthening of corporate governance.
“The EBRD equity investment in Agroinvestbank is our third equity investment in Tajikistan's banking sector and we will continue to expand our relationships and to provide support to developing financial institutions in this region,” said Mike Taylor, EBRD Director for Central Asia, Mongolia & Caucasus.
Niyozmurod Saidmurodov, CEO of Agroinvestbank said: “Having worked with EBRD for several years, we see this investment as a sign of confidence and support, not only in our bank, but in the country as a whole. We look forward to continuing our fruitful co-operation, which will enable us to continue assisting small businesses and farmers across the country”.
Agroinvestbank and the EBRD have been working together since 2005 when the bank was included in the EBRD Tajik Micro and Small Enterprise Framework and subsequently joined EBRD Trade Facilitation Programme. More recently, it also joined the EBRD Tajik Agricultural Finance Framework.
To date the EBRD has committed close to $200 million to the Tajik economy in various projects in the corporate, financial, energy and infrastructure sectors.