A senior loan of up to US$ 4.0 million (€3.4 million equivalent) to Bank Eskhata under GEFF Tajikistan. It will promote investments in climate change mitigation and adaptation technologies
The project objective is to promote investments in efficient climate change mitigation and adaptation technologies and to contribute to Tajikistan's transition to environmentally sustainable and climate-resilient economy. Proceeds of the loan will be on-lent to private sector sub-borrowers in line with the GEFF Policy Statement.
ETI score: 70
The project supports the Green TI quality through the provision of funding and know-how to financial intermediaries financing private sector investments in high performing climate change mitigation and adaptation technologies. This will facilitate Tajikistan's transition to environmentally sustainable, low-carbon and climate-resilient economy.
BANK ESKHATA OJSC
Bank Eskhata is the largest private bank in Tajikistan. With the total assets of US$ 222 million and the loan book of US$ 136 million, it holds a 10 per cent market share and is ranked among Top 5 largest banks by assets. It primarily operates in the northern region of Tajikistan through 22 branches and 182 service outlets. The EBRD has been a shareholder in the bank since 2005.
EBRD Finance Summary
Total Project Cost
A senior loan of up to US$ 4.0 million (€ 3.4 million equivalent) in three tranches: two tranches of US$ 1.5 million (€ 1.3 million equivalent) each and the third tranche of US$ 1.0 million (€ 0.8 million equivalent). 75% of each tranche will be financed from the EBRD sources in the synthetic local currency; the remaining 25 per cent of each tranche will be financed by Green Climate Fund in US dollars. Mobilised financing: USD 1 miilion (€ 0.8 million equivalent).
Innovative financing structures and/or instruments: EBRD offers an innovative green finance instrument that integrates aspects such as upfront cost and relatively longer payback period of green technologies, climate and environmental, social and governance standards and/or climate and ESG risks considerations into the financing structure.
Gender additionality: Gender additionality will be achieved by ensuring that gender considerations are reflected in the implementation of the transaction through enhancing PFIs' standards of business conduct/training of PFI staff, awareness raising campaigns to target both female and male sub-borrowers of green financing.
Environmental and Social Summary
Bank Eskhata 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. The bank should continue to provide annual E&S reporting to the Bank on compliance with the applicable PRs and any other E&S matters arising during the year. All projects under the GEFF will be required to comply with the national environment, health and safety and labour regulations and standards.
Technical Cooperation and Grant Financing
TC: The project will benefit from a comprehensive Programme-level TC package of US$ 3 million for project preparation, implementation and verifications, as well as overall monitoring of the Programme and capacity building for the PFIs. TC supports gender activities that aim to enhance women and men's equal opportunity to access finance for green technologies. Source: Green Climate Fund and Republic of Korea.
I. Grant equivalent of GCF concessional funding in the amount of up to US$ 0.08 million. The GCF's margin and front-end-fee will be discounted at 80 per cent of the EBRD's in order to support the GEFF's overall pricing. Source: Green Climate Fund.
II. Investment Incentives helping to stimulate the demand for incipient or high performing technologies in the amount of up to US$ 0.88 million. Source: EU.
Company Contact Information
PSD last updated
16 Dec 2020
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
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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).
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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.