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)
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.
ETI score: 80
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.
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
Total Project Cost
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 and 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
+7 701 781 81 45
10/2, Baitursynov str., Shymkent, Kazakhstan
PSD last updated
03 Nov 2021
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