Senior loan of up to USD 4.0 million to IMON, of which up to USD 3 million to be provided by the EBRD and up to USD 1m 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 IMON which follows the successful utilisation of the first loan signed in 2021 and the second one signed in 2022. Proceeds of the loan will be allocated to climate change mitigation and adaptation technologies. The transaction will support further expansion of IMON's product offerings with green lending products, in a gender responsive way.
ETI score: 80
The project contributes to the objectives of the GCF - Green Economy Financing Facilities Framework (GCF-GEFF Regional Framework), supporting the Green TI quality, with 100% of the use of proceeds allocated to GET activities. The GEFF loan to IMON will be the third transaction (following OPID 53005 and OPID 53455 under GCF GEFF Tajikistan I) in Tajikistan under the GCF-GEFF Regional FW, and will contribute effectively to the overall transition objectives of the GCF-GEFF Regional Framework.
At the 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.
IMON INTERNATIONAL MICROCREDIT DEPOSIT-TAKING ORGANISATION CJSC
CJSC Microcredit Deposit-taking Organisation "IMON International" ("IMON") is the largest MFI and 4th largest financial institution in Tajikistan, responsible for around 9% of total lending in the country as of end-March 2023.
The company serves over 130,000 customers via a network of 27 branches and 100 outlets located across 3 (out of 4) regions with a net loan portfolio exceeding USD 119m.
EBRD Finance Summary
Total Project Cost
A senior loan of up to USD 4 million in two tranches of USD 2 million each. 75 per cent of each tranche will be financed from the 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 in 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
Categorised FI (2019 ESP). IMON is an existing client of the Bank and their annual environmental and social (E&S) report of 2022 demonstrated improvement of their environment and social performance thus complying with the Bank's relevant performance requirements. IMON will be required to continue implementing the EBRD's E&S Risk Management Procedures for Corporate Loans, SME and Micro Loans and comply with Performance Requirements 2, 4 and 9, including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019, and submit annual E&S reports to EBRD. 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.
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 GEFF Loan is consistent with the GET approach, and the GET share is 100%.
Technical Cooperation and Grant Financing
Technical Cooperation (TC): IMON will continue to benefit from a programme-level TC package funded by the Green Climate Fund (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 and Republic of Korea.
Blended Concessional Finance:
I. Grant equivalent of concessional funding in the amount of up to USD 0.08m 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. Amount: up to USD 0.44m. Source: EBRD Shareholder Special Fund (SSF)
Company Contact Information
+992 3422 42353
17th Microdistrict, Building#2 Khudjand 735700 Republic of Tajikistan
PSD last updated
22 Aug 2023
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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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