RF- MFO KMF MSME loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior unsecured loan of up to US$ 40 million in KZT equivalent to microfinance organization KMF ("KMF" or the "Company") will help to address the economic impact of the Covid-19 pandemic. Proceeds of the proposed loan will be on-lent to local private micro-, small and medium-sized enterprises ("MSMEs") and individuals for business purposes to cover liquidity needs that may arise as a result of Covid-19. This project was approved as part of the Bank's response to the Covid-19 pandemic.

Project ID 50756

Status Complete

Location

Kazakhstan

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Elena Skufalyaridy
elena.skufa@kmf.kz
+7 (727) 331-74-74
www.kmf.kz
MFO «KMF» 50, Nazarbayev ave. Almaty 050004 Republic of Kazakhstan

Project ID 50756

Status Complete

Location

Kazakhstan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

28 May 2020

Disclosure date

11 Jun 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project description

Project objectives

The operation will enable KMF to increase the availability of short-term financing to MSMEs and individuals facing liquidity stress due to the Covid-19 crisis in Kazakhstan.

Transition impact

ETI Score:80

goal of the operation is to ensure resilience of the Company and the financial sector, and to preserve competition in the sector.

Resilient: availability of funding in times of suspended cash inflows in support of businesses experiencing direct and indirect economic impacts of the Covid-19 pandemic will support continued operations of the institution. The latter will also support the resilience of the entire MFO sector.

Competitive: the project will support KMF's lending to private MSMEs, including in the agricultural sector and women-led businesses, in Kazakhstan and preserve competition.

Client information

MFO KMF LLC

KMF is a long-standing client of the EBRD since 2005. It is the largest private microfinance organization in Kazakhstan. The company operates through 111 offices and has over 225,000 active clients.

EBRD Finance Summary

USD 40,000,000.00

Total project cost

USD 40,000,000.00

Additionality

The project is part of the Covid-19 crisis response. The project allows KMF to respond to liquidity needs of MSMEs experiencing business slowdowns and payment delays. The EBRD remains one of the few institutions providing funding in Kazakhstan in the local currency.

Environmental & Social Summary

Categorised FI (2019 ESP). MFO KMF is an existing client and is required to continue to comply with PRs 2, 4 & 9 and apply EBRD's E&S Risk Management Procedures for Corporate and SME loans and submit annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing

N/a.

Company Contact Information

Elena Skufalyaridy
elena.skufa@kmf.kz
+7 (727) 331-74-74
www.kmf.kz
MFO «KMF» 50, Nazarbayev ave. Almaty 050004 Republic of Kazakhstan

Implementation summary

The Project included a senior unsecured loan of up to US$ 40 million in KZT equivalent to microfinance organization KMF ("KMF" or the "Company") to address the negative impact of the Covid-19 pandemic. The tranches of the loan were disbursed in July 2020 and in November 2021. The loan proceeds were on-lent to local private micro-, small and medium-sized enterprises ("MSMEs") and individuals for business purposes to cover liquidity needs that arose as a result of Covid-19. This project was approved as part of the Bank's response to the Covid-19 pandemic.

The Project had (i) Resilient and (ii) Competitive transition qualities:

(i) EBRD provided funding in times of suspended cash inflows in support of businesses experiencing direct and indirect impact of the Covid-19 pandemic; this funding not only supported continued operations of KMF, but the resilience of the entire microfinance sector as KMF remains the market leader.

(ii) The Project supported KMF's lending to private MSMEs, including in the agricultural sector and women-led businesses, in Kazakhstan and preserved competition.

PSD last updated

23 Feb 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RF- MFO KMF MSME loan

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)