The provision of a senior loan up to US$ 4.0 million to MDO HUMO, of which up to US$ 3.0 million to be provided by the EBRD and up to US$ 1 million by the Green Climate Fund (GCF) under the GCF-Green Economy Financing Facility (GEFF) Regional Framework.
Proceeds of the loan will be on-lent under GEFF Tajikistan to private sector sub-borrowers (individuals/ SMEs/corporates) for investments in climate change mitigation and adaptation technologies and services in a gender-responsive way. HUMO will benefit from technical cooperation in form of trainings, capacity building and support for project implementation from the dedicated programme consultants.
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 facilitate Tajikistan's transition to environmentally sustainable, low-carbon and climate-resilient economy.
HUMO MICROCREDIT DEPOSIT ORGANISATION CJSC
HUMO is the 2nd largest microfinanace institution in Tajikistan by assets and loan portfolio. The company serves the lower segment of micro and small enterprises (MSE) niche predominantly in retail and agribusiness sectors.
EBRD Finance Summary
Total Project Cost
Innovative financing structures and/or instruments: The EBRD offers an innovative green finance instrument that integrates aspects such as upfront cost and relatively longer payback period of green technologies, climate and environmental, social and governance standards and/or climate and ESG risks considerations into the financing structure.
Gender additionality: Gender additionality will be achieved by ensuring that gender considerations are reflected in the implementation of the transaction through enhancing PFIs' standards of business conduct/training of MDO HUMO staff, awareness raising campaigns to target both female and male sub-borrowers of green financing.
Environmental and Social Summary
Category FI (2019 ESP). Bank Humo is an existing client of the Bank and its environmental and social (E&S) performance has been satisfactory to date as evidenced by annual reporting on environmental and social matters. In the context of this new transaction, Humo 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 Micro, SME and Corporate loans. Humo will continue to provide annual E&S reporting to the Bank on compliance with the applicable PRs and any other material E&S matters arising during the year. All projects under the Green Economy Financing Facility (GEFF) 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 and Energy Efficiency sub-projects. The project is consistent with the GET approach, and the GET share is 100 per cent. The Project's use of proceeds may include solar sub-projects. Such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under that approach.
Technical Cooperation and Grant Financing
TC: The project will be implemented under GCF GEFF Regional i GEFF Tajikistan Facility which is supported by a comprehensive TC package of €3.0 million for project preparation, implementation and verifications, as well as overall monitoring of the Programme and capacity building for the PFIs. HUMO will be required to provide parallel contribution of €3,000 towards the cost of the TC directly benefiting HUMO. The TC package also supports gender activities that aim to enhance women and men's equal opportunity to access climate finance for green technologies.
Non-TC: The project involves two non-TC components:
1) Grant equivalent of GCF concessional funding in the amount of up to US$ 80,000. The credit line consists of the EBRD portion (75 per cent) and GCF portion (25 per cent). The GCF's margin and front-end-fee will be discounted at 80 per cent of the EBRD's in order to support the GEFF's overall pricing on HUMO.
2) Investment incentives in the amount of up to US$ 880,000 to help stimulate the demand for incipient or high performing technologies in the context of Tajikistan. Incentives will exclusively be provided to sub-borrowers along the agricultural value chains.
Company Contact Information
+992 (44) 640-55-44
148/1 N. Qaraboev Str., 734061, Dushanbe, Republic of Tajikistan
PSD last updated
16 Feb 2022
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Independent Project Accountability Mechanism (IPAM)
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