Eskhata Bank Tajikistan - Equity Investment



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

15 Nov 2005



PSD disclosed:

14 Oct 2005

Project Description

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.


Transition Impact

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.


The Client

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.

EBRD Finance

Equity investment through acquisition of newly issued ordinary shares.

USD 2.5 million senior loan for MSE finance.

Project Cost

USD 2,500,000 and equity investment amount.

Environmental Impact

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.


Technical Cooperation

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.

Company Contact

Mr Khurshed Nasirov, CEO 135 Gagarin str 735700 Khujand city Tajikistan

Tel. +992 (342) 243945 Fax +992 (342) 267410


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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