The provision of a senior loan up to US$ 4.0 million to MDO IMON INTERNATIONAL under the GCF GEFF Regional - GEFF Tathejikistan, of which up to US$ 3.0 million will be provided in Tajikistani Somoni out of the EBRD resources and up to US$ 1.0 million will be provided in US Dollars by the Green Climate Fund ("GCF").
The proposed transaction will be the 2nd loan to IMON under the GCF GEFF Regional - GEFF Tajikistan (the "Facility"). Proceeds of the loan will be on-lent in line with the Policy Statement for the Facility to private sector sub-borrowers (individuals/ SMEs/corporates) for investments in climate change mitigation and adaptation technologies and services. IMON will benefit from Technical Cooperation ("TC") 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.
IMON INTERNATIONAL MICROCREDIT DEPOSIT-TAKING ORGANISATION CJSC
IMON is the largest microfinance institution in the country covering around 9 per cent of total lending market in Tajikistan. The company serves over 130,000 customers via a network of 27 branches and 103 outlets located across 3 (out of 4) regions. IMON offers almost a full variety of conventional banking products 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: 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.
Environmental and Social Summary
Categorised FI (2019 ESP). IMON 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 E&S matters. The 2021 E&S report shows that the Client has some E&S and Human Resources policies in place and focuses on micro-finance for individual and MSE lending (average loan size around 1,000€). This is considered as low E&S risk. In the context of this new transaction, Imon will be required to comply with Performance Requirements 2, 4 and 9 and the 2019 ESP exclusion list, 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 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 sub-projects, as applicable. The project is consistent with the GET approach, and the GET share is 100%.
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 - 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. The TC is funded by GCF and Republic of Korea. IMON will be required to provide parallel contribution of €3,000 towards the cost of the TC directly benefiting IMON.
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 IMON.
2) Investment incentives from EU in the amount of up to US$ 880,000 (subject to availability of funding) 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 3422 42353
17th Microdistrict, Building#2 Khudjand 735700 Republic of Tajikistan
PSD last updated
26 Jun 2022
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. 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).
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