RF - Arvand Bank Loan



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

23 Jun 2020



PSD disclosed:

03 Sep 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of a senior unsecured loan of USD 1.5 million in favour of Arvand Bank (Arvand). The proceeds of the loan will be channelled by Arvand to local micro and small enterprises (MSEs). This project was approved as part of the Bank's response to the Covid-19 pandemic. 

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.

Project Objectives

Due to the pandemic, local MSEs face significant cash flow constraints and require urgent support to withstand the economic downturn. In this situation, Arvand Bank could serve as a right conduit to channel funding to the local MSEs.


Transition Impact

ETI score: 80

Resilient: The Project will help to safeguard the bank's soundness and potentially facilitate the attraction of additional funding from other lenders.  

Competitive: Affordable external financing during COVID-19 crisis will support Arvand's efforts to keep providing financing to MSEs in Tajikistan. Business lending is one of the key operational priorities of Arvand Bank. The loan book is very granular, populated with solvent and creditworthy borrowers that will benefit from Arvand's enhanced lending capacity.

Client Information


Arvand has transformed from a Microfinance Institution (MFI) into a bank in September 2019 and currently operates as a fully-fledged universal commercial bank, offering a full range of banking services, primarily to retail segment. Arvand Bank is the seventh-largest bank by assets and fifth in terms of loan book and is a longstanding EBRD partner-bank. The bank currently serves over 43,000 borrowers and 45,000 deposit customers through 8 branches and 60 banking service centers across Tajikistan. 

EBRD Finance Summary

USD 1,500,000.00

A senior unsecured loan of US$ 1.5 million under the Resilience Framework in two equal tranches.

Total Project Cost

USD 1,500,000.00


The project is part of the Covid-19 crisis response. The EBRD financing effectively bridges a liquidity gap due to the adverse market conditions caused by the Covid-19 pandemic and and will allow Arvand to continue lending to eligible micro and small businesses in Tajikistan. 

Environmental and Social Summary

Category FI (2019 ESP). Bank Arvand is an existing client of the Bank and its environmental and social (E&S) performance has been satisfactory to date as evidenced by annual reporting on environmental and social matters. In the context of this new transaction, Arvand will be required to continue to comply with Performance Requirements 2, 4 and 9, and to apply the EBRD's E&S Risk Management Procedures for Corporate and SME loans as well as the EBRD's  E&S Risk Management Procedures for Trade Finance. Arvand is offering banking services largely to retail segment with an average loan size of US$ 1,000; this is considered as low E&S risk. The Company will continue to submit annual environmental and social reports to the Bank. There is no GET component expected for this Project.

Technical Cooperation and Grant Financing

Not applicable 

Company Contact Information

Abdulloev Kahor
+992 44 600 14 00
+992 3422 4 32 40
CJSC Bank Arvand 1A Somoni Avenue Khujand, 735700, Republic of Tajikistan

PSD last updated

06 Oct 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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.

Specific requests for information can be made using the EBRD Enquiries form.

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).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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