PROJECT

Projects

Summary of Investment Information

Project Number

42463

Company Name

KMF Bank JSC

Date SPI Disclosed

Apr 17, 2019

Country

Kazakhstan

Region

Central Asia and Turkiye

Projected Board Date

May 20, 2019

Environmental Category

FI-3 - No Impact

Status

Completed

Last Updated Date

Nov 27, 2024

Department

Regional Industry - FIG - ECA

Industry

Financial Markets

Previous Events

Approved : Jul 30, 2019
Signed : Aug 13, 2019
Invested : Aug 29, 2019

Sector

Microfinance and Small Business - Non Commercial Banking

Project Description

 Financing to Limited Liability Company Microfinance Organization “KMF” (“KMF” or the “Company”) to support local currency financing of micro and small enterprises (MSEs), including women enterprises and clients in remote areas of Kazakhstan, structured as (i) an A loan exposure for IFC’s own account not exceeding S$10 million equivalent in KZT and (ii) up to US$60 million Hedged A Loan Participation (“HALP”), for the account of participants (the “Project”).

KMF is the ultimate leader in the Kazakhstan microfinance sector and has demonstrated a steady growth in client base, loan portfolio and regional network since its inception in 1996. As of end-2018, the
Company had a gross loan portfolio of US$313 million and 243 thousand active clients, representing up to 54% microfinance industry market share by outstanding loans. The Company operates a developed distribution network with 117 offices including 14 regional branches, two regional back offices and a Head Quarter allowing deep outreach in rural areas.                                                  

Associated Advisory Engagement

 A new Risk Management advisory project to further enhance KMF’s risk management framework to provide the institution with a strategic advantage in the mid and long-term perspective has been discussed and is expected within next two years. 

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation