Provision of a senior unsecured loan under the Financial Intermediaries Framework (FIF) in the total amount of up to USD 2m equivalent. The loan will be structured as a synthetic Tajik Somoni loan.
As part of the transaction, Humo will introduce a new training focused on providing technical digital skills for young people in collaboration with an existing education provider. The training will be nationally accredited and certified and improve the employability of 200 young people.
The proceeds of the loan will be on-lent to local private MSMEs in accordance with the requirements of the FIF Policy Statement.
ETI score: 63
Competitive: The Client will expand its MSME portfolio, with a focus on reaching regional clients and attracting new clients. In line with the FIF requirements for large gap countries, the Client will: (i) increase its overall MSME loan portfolio by at least 1.2 times the amount of EBRD's loan; ii) maintain the current share of regional SME loans by volume iii) at least 30% of EBRD's sub-loans to be on-lent to new Humo clients. The Client will also maintain the share of NPLs below 5%.
Inclusive: Tajikistan's idle rate (NEET) among youth is 40% and employment growth is 2.3 lower than the growth of new labour market entrants. At the same time, companies face difficulties in finding skilled regional human capital and especially, companies seeking IT skills: the projected number of graduates in the field is falling short of meeting the economic needs . The country scores disproportionately low in terms of access to IT infrastructure and accordingly, the digital literacy rate. Humo has thus committed to developing an IT skills training programme for young people in Dushanbe and North Khujand, provided through a collaboration with a nationally accredited, existing education provider. The training will serve to not only enhance the country's broader digital/IT skill availability, providing recognised certificates to young people and thereby increase their employability, but further offers Humo a platform to recruit graduates and thereby support young people's school-to-work transition as well as their own digitalisation strategy.
HUMO MICROCREDIT DEPOSIT ORGANISATION CJSC
CJSC Microcredit Deposit Organisation "HUMO" (Humo) provides a full range of banking services- deposits, lending, payments, and money transfers, serving the lower segment of the MSME clients with a focus on retail and agri lending. As of end-March 2023, Humo was the 2nd largest MFI in Tajikistan by assets (USD 108m) and by loan portfolio (USD 92m).
EBRD Finance Summary
Total Project Cost
Digital Approach: Under the MSME Loan III & Skills, the Project will feature an IT skills training for youth. The project aligns with the Fund's scope of work as outlined in the EBRD's Approach to Accelerating Digital Transition 2021-2025; the digital components of the project are expected to be in support of the Inclusive Transition Quality.
Environmental and Social Summary
Category FI (2019 ESP). 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.
Technical Cooperation and Grant Financing
TC: The project will be supported by a TC assignment to assist Humo in identifying and establishing a collaboration with a suitable education partner that will be equipped to complement Humo's existing training offer through a youth-focused digital skills offer. HUMO's existing training is not certified and the TC will ensure that young people gain access to market-relevant, accredited training, supporting their school-to-work transition. Humo will share 10% of the TC amount. Source: EBRD Shareholder Special Fund.
Non-TC: Potentially at Portfolio-level 12.5% first loss risk cover for EBRD exposure under the SME LCY Programme. Source: SME LCY Special Fund.
Company Contact Information
+992 (44) 640-55-44
148/1 N. Qaraboev Str., 734061, Dushanbe, Republic of Tajikistan
PSD last updated
28 Jul 2023
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