An additional equity investment of up to US$ 1.5 million into the capital of IMON International. It will be carried out alongside with Alternative Fund, the existing 10 per cent shareholder, in order to acquire the entire stake of the largest local shareholder of IMON International Micro-credit Fund "IMON". FMO will acquire half of the purchased stake from the Bank. As a result, the EBRD and FMO will become 17.9 per cent stake holders each while Alternative Fund will have a 42.7 per cent stake.
The primary objective for the additional investment is to support IMON, so it complies with new regulations and encourage the private investor, Alternative Fund, to acquire the majority stake. The aligned commercial shareholders will continue with the value creation plan to build a resilient and sustainable business model to meet challenges of rapidly changing operating environment.
ETI score: 60
The investment will contribute to the objectives of the Financial Intermediary Framework (FIF), supporting the Competitive and Resilient transition qualities by (i) fostering MSE competitiveness through increasing availability of financing and (ii) contributing to the competitiveness of IMON through innovation in strategy, processes and marketing related to MSE lending.
IMON INTERNATIONAL MICROCREDIT DEPOSIT-TAKING ORGANISATION CJSC
Micro-credit Deposit-taking Organisation "IMON International" ("IMON", "Company") is the largest microfinance institution (MFI) in Tajikistan with 24 per cent market share in the sector as of June 2020. IMON provides a wide range of financial products and services to micro and small businesses, sole entrepreneurs and retail clients across its extensive network of 27 branches and 103 outlets.
EBRD Finance Summary
Transaction envisages an additional investment of up to US$ 1.5 million in the local currency for the acquisition of a 10.8 per cent stake.
Total Project Cost
Additionality arises from providing access to capital not readily available in Tajikistan and by capital mobilisation - Alternative Fund is encouraged to participate and take a larger share in the Company alongside the EBRD and FMO.
Environmental and Social Summary
Categorised FI (2019 ESP). IMON 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 E&S matters. In the context of this new equity transaction, IMON 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, SME and Micro Lending, for the existing and proposed portfolio.
Technical Cooperation and Grant Financing
Company Contact Information
+992 (3422) 4 23 53
17th micro-district #2, Khudjand Republic of Tajikistan
PSD last updated
23 Oct 2020
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