Provision of a senior loan of up to US$ 3.0 million to Imon International under the Green Economy Financing Facility (GEFF) for Tajikistan. The proceeds of the loan will be used to finance investments in climate change mitigation and adaptation technologies by local individuals, small businesses (SMEs) and corporates.
The project objective is to support the expansion of Imon's product offerings with green lending products, helping to build a green economy in Tajikistan by facilitating the accelerated market penetration of climate technologies.
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 support building a green economy in Tajikistan by facilitating the accelerated market penetration of climate technologies, particularly focusing on the promotion of renewable energy/energy efficiency/climate resilient technologies.
IMON INTERNATIONAL MICROCREDIT DEPOSIT-TAKING ORGANISATION CJSC
IMON is the largest micro-finance institution (MFI) in Tajikistan covering around 18% of the micro lending and 9% of total lending. The company serves over 100,000 customers via an extensive network of 28 branches and 102 outlets located across 3 (out of 4) regions.
The company was founded as a micro-lending project in 1999 by the National Association of Business Women of Tajikistan (NABWT) in partnership with the NGO MercyCorps, a global aid agency. In 2005 it was transformed into Microcredit Fund "IMON" and then into a commercial micro-lending organization "IMON International" in 2008. The company obtained a deposit taking licence in 2012 and was subsequently reorganised as a microfinance deposit-taking organisation (MDO). Since then it offers an almost full variety of conventional banking products (loan, deposit, money transfer and FX transactions) to MSMEs, sole entrepreneurs and retail clients with primary focus on underserved, economically active segments of the Tajik population.
EBRD Finance Summary
Total Project Cost
Innovative financing structures and/or instruments: EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance (ESG) standards and/or climate and ESG risk considerations into the financing structure.
Standard-setting: Client seeks EBRD expertise on higher inclusion and gender standards and/or equal opportunities action plans.
Environmental and Social Summary
IMON will be required to continue to comply with Performance Requirements 2, 4 and 9, and to apply EBRD's E&S Risk Management Procedures for Corporate and SME loans. IMON 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 sub-projects will be required to comply with the national environment, health and safety and labour regulations and standards as well as the Environmental and Social eligibility criteria for Renewable Energy sub-projects, as applicable.
Technical Cooperation and Grant Financing
A. Technical Cooperation (TC)
The project is supported by TC package funded by the GCF. The objective of the TC is to assist PFIs with capacity building, implementation and monitoring of the programme. The consultant will assess and verify the technical implementation of the investments by the sub-borrowers when needed. The consultant will transfer know-how and raise awareness about climate change mitigation and adaptation technologies amongst retail clients/ SMEs/corporates, as well as provide project appraisal support and guide sub-borrowers to most optimal technology choices. Gender activities will include i.e. a gender baseline assessment, awareness raising activities among potential sub-borrowers and capacity building of IMON staff to help address gender-specific supply and demand obstacles.
Funding source: GCF and Republic of Korea
Amount/currency: EUR 3.0m at the GCF Programme level
Funding status: Confirmed
B. Co-investment grants / Concessional Finance (Non-TC)
The project involves two Non-TC components:
i) Concessional funding from GCF is utilised to increase the appetite of PFIs to participate in the Programme and focus their resources for developing this product that could address the underserved market segment.
Funding source: GCF.
Amount/currency: USD 0.06m (grant equivalent of USD 0.75m concessional loan).
Funding status: confirmed.
ii) Investment incentives will be provided to help stimulate the demand for incipient or high performing technologies in the context of Tajikistan. Incentives will be provided only to sub-borrowers involved in the agricultural value chains.
Funding source: EU.
Amount/currency: USD 0.66m.
Funding status: confirmed.
Company Contact Information
+992 3422 42353
17th Microdistrict, Building#2 Khudjand 735700 Republic of Tajikistan
PSD last updated
15 Jul 2021
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