This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
The provision of a senior unsecured loan of up to US$ 2m (€1.8m) in KZT equivalent to Arnur Credit. The proceeds of the loan will be used for on lending to private clients (MSMEs and individuals for business purposes). This project was approved in the context of the Bank's response to the COVID-19 pandemic.
The project will allow the EBRD to contribute to the MSME sector competitiveness by increasing availability of financing to local private MSMEs active in the rural areas; and provide much needed funding and liquidity to a strong private microfinance organisation ("MFO") for on-lending to real sector in the difficult times thus improving the resilience of the financial system.
ETI score: 60
ARNUR CREDIT MICROFINANCE ORGANIZATION LLP
Arnur Credit (AC) is a privately-owned microfinance organisation( MFO) in Kazakhstan with total assets of US$ 52m, total equity of US$ 13.8m, over 23,600 of active clients, 10 branches and 93 offices. AC is headquartered in Shymkent, an administrative capital of the Turkestan Region. It focuses on providing loans to micro, small and medium-sized enterprises and sole proprietors.
EBRD Finance Summary
Total Project Cost
Financing structure: additionality of the loan is expected to stem from provision of the local currency medium-term financing to Arnur Credit for on-lending to eligible MSMEs and individuals. Such funding remains limited in the local market, especially for non-deposit taking organisations like Arnur Credit .
Standard-setting: the project will allow Arnur Credit and its sub-borrowers to achieve higher standards: Arnur Credit will continue to cooperate with the TC Consultant and improve lending technology in the MSME segment.
Environmental and Social Summary
Categorised FI (ESP 2014): AC will be required to comply with PRs 2, 4 & 9 and further comply with the EBRD's E&S Procedures for Mortgage Lending and EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and will be required to submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
Similar to other partner financial institutions in Kazakhstan, AC will benefit from trainings under the EBRD Regional Small Business Programme for Central Asia i Technical Cooperation Programme (the "RSBP") (TCRS ID 7579, EUR 4.3m). The RSBP focuses on centralised knowledge sharing for banks, non-bank microfinance institutions and other facilitators of MSME-finance via an electronic knowledge sharing and exchange platform as well as seminars on specialised subjects. The RSBP was launched in Kazakhstan in January 2018 for the initial period of 4 years and provides access to trainings in areas of sound credit analysis, risk management, non-credit banking services for MSMEs and other relevant topics. In line with the EBRD policy on parallel cost sharing, AC will cover expenses related to staff participation in seminars and costs of regular portfolio reporting requirements.
Company Contact Information
+7 701 781 81 45
10/2, Baitursynov str., Shymkent, Kazakhstan
PSD last updated
28 Sep 2020
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Environmental and Social Policy (ESP)
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.