The provision of a revolving working capital loan of US$ 500,000 to Kaindy Kant OJSC a sugar producer based in the Kyrgyz Republic. The loan will be provided under the risk sharing facility (RSF).
The RSF Loan will be used to finance direct cash payments to sugar beet farmers.
ETI score: 60
Resilient: Transition impact under the RSF is mainly expected to derive from skills transfer to the Partner Bank, in the areas of financial analysis, risk assessment and project management.
Competitive: RSF facilitates access to finance for SMEs, supporting their growth and competitiveness.
Currently RSF is rated at the framework level and the sub-projects are not given individual ETI ratings. The PTI of the framework is 60.
KAINDY KANT OJSC
Kaindy Kant OJSC, a leading sugar producer in the Kyrgyz Republic.
EBRD Finance Summary
Total Project Cost
Under RSF, additionality stems from the following:
- the EBRD is offering an innovative financing structure (e.g. mezzanine financing, risk sharing, etc.) on commercial terms not available from other banks: risk participation to help partner banks with capital and liquidity constraints.
- the EBRD is offering a tenor, which is above the market average and is necessary to structure the project.
- EBRD is offering local currency financing on terms not readily available in the market.
Environmental and Social Summary
Categorised B (ESP 2019) and Low Medium risk. The Partner Bank has provided a completed environmental and social questionnaire for the proposed transaction which shows that the client is in compliance with local environmental and social regulations. ESD visited the manufacturing facility in question in 2017 and viewed operations and interviewed management on their risk management policies and procedures. Due diligence at that earlier time showed that the site had both the capacity and capability to carry out works in line with the Bank's requirements. The current loan is for the purposes of working capital and as such, the potential EHSS risks associated with this transaction are low. No mitigation actions are required.
Technical Cooperation and Grant Financing
TC: €56,000 International Advisory project to improve the operational efficiency of the Borrower, energy efficiency and draft a long-term development strategy; €8,550 project with a local consultant to prepare the business plan; €12,120 project with a local consultant to review the Company's financials. €2,600 (the EBRD's part €1,300 or 50 per cent) in 2018-2019, €1,734 (the EBRD's part € 867 or 50 per cent) in 2019-2020 to cover the monthly monitoring of sugar collateral.
Total TC amount: €79,270. Borrower's contribution was €17,852 (23 per cent).
Company Contact Information
Bektur Aliev, CEO
+996 312 620 101
+996 312 620202
KICB Erkindik 21
PSD last updated
11 Nov 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.