A senior loan of up to € 1.7 million supported by technical assistance to Bank Eskhata, the leading private bank in Tajikistan, aimed at supporting women's entrepreneurship
The project objective is to promote and support women's entrepreneurship in Tajikistan and more broadly, women's participation in business by assisting women-led MSMEs to access finance, know-how and advice, particularly in the regions. The financing gap, in particular, is a major obstacle in enabling the transition of women-led MSMEs. The project implemented by Bank Eskhata, an experienced lender to women-led businesses, will contribute to narrowing the gap. The proceeds will be used to finance loans to eligible women-led MSMEs in accordance with the elibibility criteria set in the Policy Statement for the Central Asian Women in Business Programme.
ETI score: 70
The project contributes to the objectives of the Central Asia Women in Business Programme by supporting the Inclusive and Competitive TI qualities. It will promote female entrepreneurship, thus alleviating gender inclusion gaps in terms of "access to finance" and "employment and business".
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
A senior unsecured loan of € 1.7 million equivalent under the Central Asian Women in Business Programme in two equal tranches.
Total Project Cost
A bilateral loan in synthetic local currency; no mobilised financing.
The project is highly additional as it broadens access to finance for women-led MSMEs through offering tairored products and facilitating economic inclusion of female entrepreneurs. The Bank will share its expertise in inclusion, combining it with dedicated financing and business advisory services as part of the Programme.
Environmental and Social Summary
In the context of the transaction, 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. Eskhata 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.
Technical Cooperation and Grant Financing
TC: The Central Asian Women in Business Programme includes two TC components: i) tailored capacity-building for partner banks (US$ 5.0 million financed by We-Fi), and ii) capacity-building for women-led MSMEs via the Advice for Small Businesses team (US$ 4.5 million financed by We-Fi).
Non-TC: The project involves a First Loss Risk Cover mechanism of up to 10 per cent of the loan (limited to 70 per cent per a single sub-loan) which translates into up to US$ 0.2 million; the mechanism will compensate for credit losses of Bank Eskhata, if any and within US$ 0.2 million, in relation to its participation in the Programme. Sourse: SBIF.
Company Contact Information
PSD last updated
16 Dec 2020
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