The sole owner of Kompanion is Mercy Corps, a US-based international NGO established in 1979 with a mission to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities. Mercy Corps has a broad experience in microfinance.

The total project cost consists of a proposed senior loan of $6 million equivalent in either Kyrgyz Som (desired) or US Dollar to Kompanion for IFC’s own account to support the growth of the Company’s microfinance operations in Kyrgyz Republic.

6.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.0
Equity

* These investment figures are indicative

Headquartered in Biskek, Kompanion is currently present in all seven regions of the country and runs a network of 16 branches and 154 outlets thus having a nation-wide coverage.

The developmental impact is expected to be high:

- The Project would provide funding for the underserved segments of the society, more specifically women entrepreneurs and individuals in poor rural areas.

- In Kyrgyz Republic, the provision of term funding in the local financial market would have a strong demonstration effect and build market confidence.

- Strengthening the microfinance sector in Kyrgyzstan will allow to prop up economic growth in the country through generation of new jobs and improvement of life at the base of the pyramid.

IFC''s additionality can be summarized as follows:

- Provide term-funding for growth. As a result of the financial crisis and the political turmoil of 2010, term-funding for Kyrgyz microfinance companies has become scarce. IFC''s term loan would provide the necessary funding to continue the growth of the Company and support its expanded product offer to local entrepreneurs.

- Provide local currency funding to the Company at a time when local currency options are limited in Kyrgyzstan. IFC would help the Company reduce its foreign currency exposure, better manage assets and liabilities and improve its risk profile.

The proposed project is with a new IFC client to provide a senior loan to Kompanion to expand lending to micro and small entrepreneurs. The project has been classified as category FI according to the IFC Environmental and Social Review Procedure. Kompanion has internal procedures to manage its E&S risks. The company screens its investments against the Exclusion List and a set of E&S criteria, which are taken into account in pricing its loans. The client will be required to formalize its procedures in a formal Environmental and Social Management System (ESMS), adjust its Exclusion List to include items on the IFC Exclusion List, and incorporate reviewing borrowers’ operations for compliance with environmental and social laws and regulations of the Kyrgyz Republic where they exist and are applicable. Kompanion will also be required to demonstrate ongoing compliance with IFC Performance Standard 2: Labor and Working Conditions in its employment practices and regularly report to IFC its E&S performance in accordance with the format to be provided by IFC.