Bank CenterCredit WiB Loan II

Location:

Kazakhstan

Project number:

50057

Business sector:

Financial institutions

Notice type:

Private

Target board date:

20 Jun 2018

Status:

Board Approved

PSD disclosed:

17 May 2018

Translated version of this PSD: Russian

Project Description

A 3-year local currency senior loan to Bank CenterCredit JSC ("BCC") in the amount of up to US $ 5 million in KZT equivalent. The financing will be used for on-lending to eligible women-led private micro, small and medium sized enterprises (MSMEs) in Kazakhstan.

Project Objectives

The aim of the loan is to promote women's entrepreneurship and access to finance, and more broadly women's participation in business, through the development of a strong Women in Business MSME sector in Kazakhstan, by facilitating access to finance and advice for women-led MSMEs. The loan will be complemented by the development of sustainable credit mechanisms targeted at women-led MSMEs through technical assistance to BCC; and technical support for women-led MSMEs in accessing know-how, business development tools and networking opportunities.

Transition Impact

The project has important transition impact potential, specifically in relation to addressing the gender related inclusion gap for access to finance in Kazakhstan. It will help BCC develop, test, and roll out tailored sustainable credit mechanisms targeted at women-led MSMEs through technical assistance and strengthen their capacities to effectively reach out to the target segment via marketing and outreach activities. The project will also improve access to term funding in local currency for women led MSMEs in the country. A special focus will be given to distribution of funds in the regions outside of Astana and Almaty, the administrative and financial capitals of Kazakhstan.

Client Information

BANK CENTERCREDIT JSC

JSC Bank CenterCredit ("BCC") is the 7th largest bank (out of 32) in Kazakhstan with total assets of US$ 4 bln and equity of US$ 388 mln and market shares of 5.3 per cent in total assets, 5.7 per cent in customer loans and 5.9 per cent in deposits as of the end of 2017. The bank offers a wide range of retail, corporate and MSME products via its distribution network of 19 branches and 101 outlets in 19 cities and rural settlements of Kazakhstan.

EBRD Finance Summary

USD 5,000,000.00

A senior loan of up to US$ 5 million in KZT equivalent.

Total Project Cost

USD 5,000,000.00

US$ 5 million in KZT equivalent.

Environmental and Social Summary

Categorised FI. BCC will be required to comply with PRs 2, 4 and 9 and adopt and implement the EBRD's E&S Risk Management Procedures for MSME loans and submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation

Since 2015, the Government of Kazakhstan has provided US$ 16.9 million under the Donor Contribution Agreement and the Supplementary Agreement with the EBRD to support implementation of the EBRD's Women in Business Programme in the country. Out of this amount US$ 2.5 million was provided for Technical Assistance to partner financial institutions (PFIs), US$ 6 million for Technical assistance in support of capacity building to women-led MSMEs, and US$ 8.4
million for credit enhancement in the form of a First Loss Risk Cover.

Company Contact Information

Madina Sultanova
madina.sultanova@centercredit.kz
+ 7 (727) 259 85 46
www.bcc.kz
38 Al-Farabi Avenue, Almaty, 050059, Kazakhstan

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