RSF- KICB Unfunded Kaindy Kant Extension

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a revolving working capital loan of US$ 500,000 to Kaindy Kant OJSC a sugar producer based in the Kyrgyz Republic. The loan will be provided under the risk sharing facility (RSF).

Project ID 52977

Status Complete

Location

Kyrgyz Republic

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Bektur Aliev, CEO
bektura@kicb.net
+996 312 620 101
+996 312 620202
www.kicb.net
KICB Erkindik 21

Project ID 52977

Status Complete

Location

Kyrgyz Republic

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

19 Oct 2021

Disclosure date

10 Nov 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

The provision of a revolving working capital loan of US$ 500,000 to Kaindy Kant OJSC a sugar producer based in the Kyrgyz Republic. The loan will be provided under the risk sharing facility (RSF).

Project objectives

The RSF Loan will be used to finance direct cash payments to sugar beet farmers.

Transition impact

ETI Score:60

lient: Transition impact under the RSF is mainly expected to derive from skills transfer to the Partner Bank, in the areas of financial analysis, risk assessment and project management.

Competitive: RSF facilitates access to finance for SMEs, supporting their growth and competitiveness.

Currently RSF is rated at the framework level and the sub-projects are not given individual ETI ratings. The PTI of the framework is 60.

Client information

KAINDY KANT OJSC

Kaindy Kant OJSC, a leading sugar producer in the Kyrgyz Republic.

EBRD Finance Summary

USD 500,000.00

Total project cost

USD 1,000,000.00

Additionality

Under RSF, additionality stems from the following:

- the EBRD is offering an innovative financing structure (e.g. mezzanine financing, risk sharing, etc.) on commercial terms not available from other banks: risk participation to help partner banks with capital and liquidity constraints.

- the EBRD is offering a tenor, which is above the market average and is necessary to structure the project.

- EBRD is offering local currency financing on terms not readily available in the market.

Environmental & Social Summary

Categorised B (ESP 2019) and Low Medium risk. The Partner Bank has provided a completed environmental and social questionnaire for the proposed transaction which shows that the client is in compliance with local environmental and social regulations. ESD visited the manufacturing facility in question in 2017 and viewed operations and interviewed management on their risk management policies and procedures. Due diligence at that earlier time showed that the site had both the capacity and capability to carry out works in line with the Bank's requirements. The current loan is for the purposes of working capital and as such, the potential EHSS risks associated with this transaction are low. No mitigation actions are required.

Technical Cooperation and Grant Financing

TC: €56,000 International Advisory project to improve the operational efficiency of the Borrower, energy efficiency and draft a long-term development strategy; €8,550 project with a local consultant to prepare the business plan; €12,120 project with a local consultant to review the Company's financials. €2,600 (the EBRD's part €1,300 or 50 per cent) in 2018-2019, €1,734 (the EBRD's part € 867 or 50 per cent) in 2019-2020 to cover the monthly monitoring of sugar collateral.

Total TC amount: €79,270. Borrower's contribution was €17,852 (23 per cent).

Non-TC: None

Company Contact Information

Bektur Aliev, CEO
bektura@kicb.net
+996 312 620 101
+996 312 620202
www.kicb.net
KICB Erkindik 21

PSD last updated

11 Nov 2021

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RSF- KICB Unfunded Kaindy Kant Extension

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)