TSOB Equity Investment



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

07 Sep 1999



PSD disclosed:

06 Aug 1999

Project Description

EBRD equity investment in joint-stock Commercial Bank for Foreign Economic Activity Tajikvnesheconombank (TVEB), a Tajik private bank, with its headquarters located in Dushanbe. The investment will be supported by an Institutional Development Programme (IDP) funded by technical co-operation (TC) funds.

The proceeds of the EBRD investment will be used by TVEB to strengthen its capital base and to increase its funding base in support of anticipated growth in lending to small and medium-sized enterprises. The project will also aim to institutionally strengthen the bank via a tailored IDP funded by technical cooperation.

A redemption option has been negotiated, which may be exercised by the EBRD upon the occurrence of specific trigger events, including government intervention in the activities of TVEB.

Transition Impact

The project is expected to have a significant impact on the transition process. The EBRD will play a key role in the development of TVEB, the Tajik financial sector and the real economy.

The Client

Formerly the country's foreign trade bank, TVEB is estimated to be the fourth-largest Tajik bank by total assets and the second-largest private bank in the country.

Potential co-equity investors in TVEB are the Aga Khan Fund for Economic Development (AKFED), which would play a lead/strategic investor role in the bank, and the International Finance Corporation (IFC). Their investments in TVEB are subject to satisfactory due diligence and successful negotiations with TVEB.

EBRD Finance

Up to US$ 500,000 (EUR 489,400) equity investment by the EBRD with potential mobilisation of co-investments by AKFED and the IFC totalling approximately US$ 1.36 million (EUR 1.33 million).

Project Cost

Total potential capital increase (from the EBRD, AKFED and the IFC) of US$ 1.86 million (EUR 1.82 million).

Environmental Impact

TVEB will carry out its operations in accordance with the EBRD's Environmental Procedures for Intermediated Lending through Local Banks. In implementing these procedures, TVEB will require its borrowers to comply, at a minimum, with national/local health, safety, environmental and public consultation requirements.

Technical Cooperation

Technical cooperation funding of EUR 555,000 for the IDP.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Share this page: