Provision of a senior loan of up USD 3.0 million equivalent to Humo, of which up USD 2.25m equivalent is to be provided by the EBRD and up USD 0.75m to be provided by the GCF under the GCF-Green Economy Financing Facility Regional Framework (GCF-GEFF Programme in Tajikistan II).
The proposed operation complies with the GCF GEFF Regional Framework criteria. This is the third loan under the Framework to Humo which follows the successful utilisation of the "pilot" loan signed in 2019 and the second facility in 2022. Proceeds of the loan will be allocated to climate change mitigation and adaptation technologies. The transaction will support further expansion of Humo's product offerings with green lending products, in a gender responsive way.
ETI score: 90
The project contributes to the objectives of the GCF-GEFF Regional Framework, and in particular of the GCF-GEFF Tajikistan II, supporting the Green transition impact quality in line with the GET transition impact rating methodology, with 100% of the use of proceeds allocated to GET activities. The project will contribute to the Programme's objective of providing support to building a green economy in Tajikistan by facilitating accelerated market penetration of climate technologies, particularly focusing on promotion of climate resilience and resource efficiency technologies applicable to the agricultural sector and rural areas.
Humo will commit to developing and implementing a green transition plan. Within two years from signing, Humo will aim to submit to the EBRD a transition plan, which will set out time-bound targets, actions and plan to improve its business practices in relation to climate change and align financial flows with the goals of the Paris Agreement.
At the GCF GEFF Tajikistan II Programme level, a green policy engagement component is included. The key activities and deliverables of the policy dialogue is institutional reform in the financial sector in Tajikistan, to be achieved by supporting the National Bank of Tajikistan in adoption of a regulation aimed at addressing climate risk, primarily through voluntary disclosures.
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
A senior unsecured loan of up USD 3m equivalent in two equal tranches of the equivalent of USD 1.5m each. 75 per cent of each tranche will be financed from EBRD sources in the synthetic local currency; the remaining 25 per cent of each tranche will be financed by Green Climate Fund (GCF) in US dollars.
Financing structure: EBRD offers a tenor which is above the market average and is necessary to structure the project. EBRD offers local currency financing on terms not readily available on the market.
Innovative financing structures and/or instruments: EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance (ESG) standards and/or climate and ESG risk considerations into the financing structure.
Standard-setting: Client seeks EBRD expertise on higher inclusion and gender standards and/or equal opportunities action plans.
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
Technical Cooperation (TC): Humo will continue to benefit from a programme-level TC package funded by the GCF, Republic of Korea and Republic of Austria. The objective of the TC is to assist PFI with capacity building, implementation and monitoring of the programme, including in regards to gender additionality. Funding source: GCF, Republic of Austria, Republic of Korea and other donors.
Climate risk and transition planning TC
The project will be additionally supported by a separate TC assignment focused on climate risk and the development and implementation of a transition plan which aims at the alignment of PFI operations with the objectives of the Paris Agreement, funded by the EBRD Shareholder Special Fund.
Blended Concessional Finance:
I. Grant equivalent of concessional funding in the amount of up to USD 0.06m will be utilised to increase the appetite of PFIs to participate in the Programme and direct their resources for developing this product to address the underserved market segment. 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. Source: GCF
II. Investment incentives will be provided 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. Amount: up to USD 0.33m (may be increased to up to USD 0.396m upon availability of donor funding). Source: SSF
Company Contact Information
+992 (44) 640-55-44
148/1 N. Qaraboev Str., 734061, Dushanbe, Republic of Tajikistan
PSD last updated
28 Jul 2023
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.
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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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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).
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 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; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.