FIF - KICB MSME Loan III

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior loan of up to US$ 5 million equivalent in the synthetic Kyrgyz Som (KGS) to Kyrgyz Investment and Credit Bank (KICB) under Financial Intermediaries Framework (FIF) for financing local private MSMEs.

Project ID 55274

Status Approved

Location

Kyrgyz Republic

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

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

Company Contact Information

Aida Ibragimova
AidaI@kicb.net
+996 312 62 12 29
+996 312 62 12 29
kicb.net
21, Erkindik blvd., Bishkek, Kyrgyz Republic

Project ID 55274

Status Approved

Location

Kyrgyz Republic

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

08 Oct 2024

Disclosure date

17 Oct 2024

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."

FIF - KICB MSME Loan III (Kyrgyz) (PDF, 0.20MB)

Project description

Project objectives

The project contributes to the objectives of the Financial Intermediary Framework (FIF). FIF seeks to (i) foster SME competitiveness by increasing availability of financing and (ii) contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes and marketing related to MSME lending. By ensuring that banks have robust underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.

Transition impact

ETI Score:60

project will contribute to the Competitive and Resilient Transition Impact qualities. The project will support KICB's lending to private MSMEs in Kyrgyzstan by a multiple of the EBRD's funding with the focus on regional outreach and attraction of new MSME clients, while maintaining sound underwriting standards.

Client information

KYRGYZ INVESTMENT AND CREDIT BANK CJSC

Kyrgyz Investment and Credit Bank (KICB) is a major private bank in Kyrgyz Republic. With total assets of US$ 680m at end-1H 2024, KICB is ranked the sixth largest bank in the Kyrgyz Republic with close to 9 per cent of market share by total assets. The bank is majority owned (90 per cent) by the Aga Khan Fund for Economic Development ("AKFED", Switzerland).

EBRD Finance Summary

USD 5,000,000.00

The Loan will be provided in two tranches in the amount of US$ 2 million (Tranche 1) and US$ 3 million (Tranche 2) in the synthetic local currency. Tranche 1 will be committed upon signing the transaction, and Tranche 2 will be uncommitted and its commitment will be delegated to the Management. The tenor of each tranche will be 4 years from the respective availability date, including a 1 year grace period and 7 semi-annual repayments.

Total project cost

USD 5,000,000.00

Additionality

Additionality will be achieved through a combination of: (i) much-needed medium-term financing in the local currency; and (ii) risk mitigation.

Environmental & Social Summary

Categorised FI (ESP 2019). KICB is an existing client and has been satisfactorily implementing the Bank's E&S requirements under existing exposures in compliance with PRs 2, 4 and 9. These requirements will remain in place, and the client will further comply with the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans; adhere to the updated EBRD's Environmental and Social Exclusion List as well as Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank. KICB's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements.

Technical Cooperation and Grant Financing

TC: None

Non-TC: None

Company Contact Information

Aida Ibragimova
AidaI@kicb.net
+996 312 62 12 29
+996 312 62 12 29
kicb.net
21, Erkindik blvd., Bishkek, Kyrgyz Republic

PSD last updated

17 Oct 2024

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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FIF - KICB MSME Loan III

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)