The provision of a 3-year local currency senior loan of up to US$ 20 million in KZT equivalent to Bank CenterCredit JSC ("BCC") under the Green Economy Financing Facility ("GEFF") Kazakhstan.
The loan will allow BCC to support local currency lending to eligible private micro, small and medium-sized enterprises ("MSMEs") for investments in climate change mitigation and adaptation technologies.
ETI score: 70
The loan will contribute to the Green Transition Impact quality with 100 per cent of the use of proceeds allocated to Green Economy Transition ("GET") activities. The project supports BCC's lending to private MSMEs in Kazakhstan for investments in climate change mitigation and adaptation projects supporting GET.
BANK CENTERCREDIT JSC
BCC is the 5th largest bank (out of 26) in Kazakhstan with total assets of US$ 4.4 billion, equity of US$ 313 million and market shares of 5.9% in total assets, 7.1 per cent in customer loans and 5.5 per cent in deposits as of late 2020. The bank offers a wide range of retail, corporate and MSME products via its distribution network of 19 branches and 117 outlets in 18 cities and rural settlements of Kazakhstan.
EBRD Finance Summary
A senior loan of up to US$ 20 million in KZT equivalent.
Total Project Cost
A senior loan of up to US$ 20 million in KZT equivalent.
Combination of investments with technical assistance, innovative financing structures and instruments, as well as standards setting by helping clients to achieve higher standards to support transition to low-carbon and climate resilient economy.
Environmental and Social Summary
Categorised FI. BCC will be required to comply with PRs 2, 4 and 9 and adopt and implement the EBRD's E&S Risk Management Procedures for MSME loans and submit Annual Environmental and Social Reports to the EBRD.
Technical Cooperation and Grant Financing
BCC will benefit from a Technical Cooperation (TC), which will help to (i) identify the target customer segments for green investments, develop marketing and product strategies, and prioritise internal resources for the new green financing opportunities; and (ii) aid the bank's sub-borrowers in structuring their projects and preparing them for financing. Verification checks will ensure incentive payments are made only when projects are completed in line with investment plans. The TC funds are provided by Austria.
The operation will be supported with non-refundable co-investment grants for investment incentives to sub-borrowers in line with the levels and eligibility criteria presented in the Policy Statement.
Investment incentives are necessary to encourage Kazakh businesses to adopt green technologies and help early movers to prioritise energy efficiency projects, which, in turn, promote higher performance standards. The grant resources will be provided by the Global Environment Facility under the Reducing GHG Emissions through a Resource Efficiency Transformation Programme in Kazakhstan.
Company Contact Information
+7 (727) 259 85 46
38 Al-Farabi Avenue, Almaty, 050059, Kazakhstan
PSD last updated
07 Apr 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.