FIF - Kazakhstan WiB - MFO Arnur Credit - WiB loan II

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior unsecured loan of up to US$ 4.0m (€3.4m) in KZT equivalent to Arnur Credit - a private microfinance organisation based in Kazakhstan. The loan will be provided under the KazWiB (Women in Business programme)

Project ID 53098

Status Repaying

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

Raushan Kurbanaliyeva
raushan-k@arnurcredit.kz
+7 701 781 81 45
arnurcredit.kz
10/2, Baitursynov str., Shymkent, Kazakhstan

Project ID 53098

Status Repaying

Location

Kazakhstan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

02 Nov 2021

Disclosure date

03 Nov 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

Project objectives

The aim of the loan is to promote women's entrepreneurship and access to finance, and more broadly women's participation in business, through the development of a strong Women in Business SME sector in Kazakhstan, by facilitating access to finance and advice for women-led MSMEs. The loan will be complemented by the development of sustainable credit mechanisms targeted at women-led MSMEs through technical assistance to Arnur Credit; and technical support for women-led MSMEs in accessing know-how, business development tools and networking opportunities.

Transition impact

ETI Score:80

FW)

The project contributes to the objectives of the FIF and the KazWiB, supporting the Inclusive (Primary) and Competitive (Secondary) transition qualities. The overall objective of the KazWiB is to promote and support women's entrepreneurship and help address the access to finance gaps that women face. Moreover, at least 10 per cent of the loan proceeds will be utilised for GET-eligible projects to women-led businesses.

Client information

ARNUR CREDIT MICROFINANCE ORGANIZATION LLP

Arnur Credit is a private microfinance organisation in Kazakhstan with total assets of US$ 56m, total equity of US$ 17.3m, over 19,500 active clients, and 43 offices as of first half of 2021. AC is headquartered in Shymkent, former administrative capital of the Turkestan Region.

EBRD Finance Summary

USD 4,000,000.00

Total project cost

USD 4,000,000.00

Additionality

Financing structure: additionality of the loan is expected to stem from provision of the local currency medium-term financing to Arnur Credit for onlending to eligible MSMEs and individuals. Such funding remains limited in the local market, especially for non-deposit taking organisations like Arnur Credit.

Knowledge, innovation and capacity building: Arnur Credit will benefit from technical assistance (the KazWiB TC support, as well as TC support related to GET financing). TC support will be crucial in transferring skills and unique know-how which are not otherwise readily available to PFIs in the local market.

Environmental & Social Summary

Categorised FI (ESP 2014): Arnur Credit will be required to comply with PRs 2, 4 & 9 and further comply with the EBRD's E&S Procedures for Mortgage Lending and the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and will be required to submit annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing

Arnur Credit, that is already a client of the EBRD under the KazWiB, will continue to benefit from the TC support under the new WiB loan, which will be mostly focus on further development of digital sales channels. The TC will consist of two linked components: (i) Capacity-building to Participating Financial Institutions, funded by the Ministry of National Economy of the Republic of Kazakhstan, to implement the Kazakhstan WiB Programme ("KazWiB"), and a range of cross-cutting activities in support of the KazWiB promotion and management; and (ii) women-led MSMEs access to know-how (Advice for Small Businesses).

Similar to other partner financial institutions in Kazakhstan, Arnur Credit will benefit from trainings under the EBRD Regional Small Business Programme for Central Asia Technical Cooperation Programme (the "RSBP") (TCRS ID 7579, €4.3m). The RSBP focuses on centralised knowledge sharing for banks, non-bank microfinance institutions and other facilitators of MSME-finance via an electronic knowledge sharing and exchange platform as well as seminars on specialised subjects. The RSBP was launched in Kazakhstan in January 2018 for the initial period of 4 years and provides access to trainings in areas of sound credit analysis, risk management, non-credit banking services for MSMEs and other relevant topics. In line with the EBRD policy on parallel cost sharing, AC will cover expenses related to staff participation in seminars and costs of regular portfolio reporting requirements.

For the implementation of the GET component of the transaction, Arnur Credit will benefit from the TC support of up to EUR 30,000. The TC will help AC to (i) develop marketing and product strategies, and prioritise internal resources for the new green financing opportunities; and (ii) aid the AC's sub-borrowers in structuring their sub-projects and preparing them for financing. The TC funds are provided by Austria. Moreover, Arnur Credit will be able to access the e-Learning platform developed by GECA/E2C2.

Company Contact Information

Raushan Kurbanaliyeva
raushan-k@arnurcredit.kz
+7 701 781 81 45
arnurcredit.kz
10/2, Baitursynov str., Shymkent, Kazakhstan

PSD last updated

03 Nov 2021

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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FIF - Kazakhstan WiB - MFO Arnur Credit - WiB loan II

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

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)