PROJECT

Projects

Summary of Investment Information

Project Number

47229

Company Name

KYRGYZ INVESTMENT AND CREDIT BANK CJSC

Date SPI Disclosed

Apr 19, 2023

Country

Kyrgyz Republic

Region

Central Asia and Turkiye

Projected Board Date

Mar 10, 2023

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Jun 15, 2023

Department

Regional Industry FIG MCT

Industry

Financial Markets

Previous Events

Approved : Mar 20, 2023
Signed : May 17, 2023
Invested : Jun 13, 2023

Sector

Commercial Banking - Microfinance

Additional Project Attributes

Blended Finance

Project Description

The proposed project consists of a 4-year senior unsecured loan of up to US$15 million denominated in Kyrgyz Som (KGS) to Closed Joint-Stock Company “Kyrgyz Investment and Credit Bank” (KICB or Bank), a long-standing IFC client, to be used to increase access to finance for underserved individuals and micro-enterprises (MEs) in the Kyrgyz Republic, including via microfinance institutions (MFIs), with a particular focus on sustaining affordable housing finance for low-income individuals and financing to women-owned MEs (WMEs) during a challenging economic environment caused by the COVID-19 crisis and further exacerbated by the Russian invasion of Ukraine (the Project). KICB will use IFC’s loan proceeds to provide financing to its clients (70%) and channel the rest (30%) via local MFIs. Furthermore, 50% of the financing will be used to finance housing projects to low-income individuals and 50% to WMEs. The Project will be processed under IFC’s COVID Base of the Pyramid Facility (#44915) and is expected to benefit from IDA-PSW Pooled First Loss Guarantee (“PFLG”) to help de-risk the Project and IDA-PSW Local Currency Facility (“LCF”) to support the local currency financing.                                                

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation