KYRGYZ REPUBLIC - INEXIM BANK - EQUITY PARTICIPATION

Location:

Kyrgyz Republic

Project number:

32556

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

30 Sep 2003

Status:

Completed

PSD disclosed:

29 Aug 2003

Project Description

The proposed project is an equity investment for the purchase of up to 25% of the capital of Inexim Bank (IB) in the Kyrgyz Republic through participation in the planned capital increase. The Bank will invest alongside Temir Bank Kazakhstan (the Sponsor), which will acquire a 46% stake in Inexim Bank through the acquisition of existing shares and participation in the capital increase.
The project is intended to (i) support Inexim Bank's capitalisation and further growth and development of its retail and SME operations; (ii) assist Inexim Bank's institutional building and strengthening of corporate governance; and (iii) promote regional co-operation between Kazakh and Kyrgyz banks.

Transition Impact

The EBRD's and Temir Bank's investment in Inexim Bank are expected to send a message to the market and international investors in the country about the potential of the local economy and banking sector. The investment by Temir is one of the first cross-border banking acquisitions in Central Asia fostering regional co-operation. The project will also provide indirect term financing to Kyrgyz companies, mostly SMEs, which are otherwise severely restricted in their access to term finance.

The Client

Inexim Bank is the sixth largest Kyrgyz Bank with assets of KGS 376 million ($8.2 million) and capital of KGS 100 million ($2.2 million) at 2002 year-end. The bank operates mostly through its head office in Bishkek, the capital of the Kyrgyz Republic, and a recently opened branch in Osh, the second largest city in the country. Inexim Bank is focusing on providing a wide range of products to its customers and finds its strongest niche in the retail and SME segments.

EBRD Finance

Up to KGS 57.5 million equity investment.

Project Cost

KGS 130 million approximately, which includes Temir Bank's investment in IB's capital increase.

Environmental Impact

Inexim Bank will continue to carry out its operations in accordance with EBRD's Environmental Procedures for Local Banks across the full range of its operations. In implementing these procedures, Inexim Bank requires its borrowers to comply, at a minimum, with national health, safety and environmental requirements.

Technical Cooperation

None.

Company Contact

Ruslan Boronbaev, Deputy Chairman of the Board
Ruslanb@ineximbank.com 
57, K.Akiev str
Bishkek, 720001
Kyrgyz republic
 

Business opportunities

For business opportunities or procurement, contact the client company.

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