KyrSEFF III - FINCA Bank Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior synthetic KGS loan of up to US$ 4 million to FINCA Bank under the Kyrgyz Republic GEFF (KyrSEFF III ). The proceeds will be on-lent to sub-borrowers for energy efficiency, renewable energy, circular economy, and climate resilience investments. The project will further strengthen MSE competitiveness, improve climate resilience and promote the financial sector development in particular through local currency lending.

Project ID 54971

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

nullfinca@fincabank.kg
+996(312)440440
www.fincabank.kg
93/2 Shopokov street, 720011, Bishkek, Kyrgyzstan

Project ID 54971

Status Approved

Location

Kyrgyz Republic

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

25 Feb 2025

Disclosure date

22 Feb 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."

KyrSEFF III - FINCA Bank Loan (Russian) (PDF, 0.18MB)

Project description

Project objectives

The transaction will contribute towards building a more competitive financial sector through developing the internal capacity of FBK for financing energy and water efficiency projects. This will be achieved through a technical assistance aimed at providing implementation support to FBK and their customers, verification of the outcomes, and investment incentives to end borrowers. Sub-projects are selected according to technical and financial eligibility criteria set forth in the policy statement for KyrSEFF III. 100 per cent of the proceeds will be used for Green Economy Transition investments.

Transition impact

ETI Score:70

ject will contribute towards building a green economy by facilitating the expansion of energy/water efficiency lending to residential and commercial sectors in the Kyrgyz Republic and positive demonstration effects of energy/water efficiency projects.

Client information

FINCA BANK CJSC

FINCA Bank Kyrgyzstan ("FBK") was founded as a charitable foundation in 1995, aiming to provide financial services to low-income entrepreneurs. It was subsequently transformed into a microfinance company in 2003, and ultimately became a fully regulated bank in 2015.

FBK provides a wide range of services including loans to MSMEs, agricultural loans and money transfer services, current accounts for legal entities and individuals, fixed-term and saving deposits, settlement and encashment services.

EBRD Finance Summary

USD 4,000,000.00

Synthetic Kyrgyz Som (KGS) senior loan of up to US$ 4 million equivalent for on-lending to eligible private micro and small enterprises (MSEs) for financing GET Investments. The tenor will be 3 years including a 1 year grace period.

Total project cost

USD 4,000,000.00

Additionality

Additionality will be achieved through a combination of: (i) much-needed medium-term financing in local currency; (ii) innovative financing structure and instruments, (iii) standard-setting and (iv) knowledge, innovation and capacity building.

Gender additionality is expected to be achieved by building the capacity of the company in gender-responsive green lending in addition to supporting equal access to green finance for women and men.

Environmental & Social Summary

Category FI (2019 ESP). EBRD has had a historic relationship with the client, under which they implemented and maintained an ESMS appropriate to the risks posed by their investment activities. The client will be required to maintain compliance with PR2 and PR4 for their internal operations linked to the Projects and apply PR9 to the Project investment activities. Compliance with PR9 will be supported by the Project Consultant associated with the GEFF related line.

Technical Cooperation and Grant Financing

FINCA Bank will receive support from the Facility Consultant under KyrSEFF III TC Programme in matters of marketing, project origination and preparation, overall successful management and implementation of the Facility, in a gender-responsive way. Up to €3.2 million dedicated to support the implementation of the KyrSEFF III.

Funding source: Shareholder Special Fund.

Company Contact Information

nullfinca@fincabank.kg
+996(312)440440
www.fincabank.kg
93/2 Shopokov street, 720011, Bishkek, Kyrgyzstan

Implementation summary

PSD last updated

22 Feb 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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KyrSEFF III - FINCA Bank Loan

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

Implementation summary

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)