|
|  |
| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
 | |
| Project number | 24144 |
| Project name | KICB II |
| Country | Kyrgyz Republic |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Kyrgyz Investment & Credit Bank |
| Environmental category | FI-1 |
| Date SPI disclosed | May 10, 2005 |
| Projected board date | June 10, 2005 |
| Status | Active |
| Previous Events | Invested: May 4, 2006
Signed: June 29, 2005
Approved: June 28, 2005 |
|
| Description of company and purpose of project |
| The project consists of a credit line facility of up to $2.5 million to Kyrgyz Investment and Credit Bank (KICB, the bank or the company), an IFC existing portfolio commercial bank specialized in small- and medium-sized (SME) enterprise finance. KICB is looking to raise debt financing to meet loan demands from eligible clients in the Kyrgyz Republic. The facility would broaden the Bank’s funding base, and support the growth of the Bank and the financing of SMEs. As of end 2004, KICB had total assets of $21.1 million, shareholders’ equity of $6.9 million, and net income of $423 thousands. |
|
| Project sponsor and major shareholders of project company |
| The project sponsor is KICB. Established in August 2001, KICB is a licensed commercial bank, based in Bishkek, Kyrgyzstan. The Bank is a full-service, deposit-taking institution regulated by the National Bank of Kyrgyz Republic, NBKR, and licensed to operate nationally. KICB’s founders and shareholders include: the Aga Khan Fund for Economic Development (“AKFED”) (30.0%); IFC (20.0%); DEG (20.0%); EBRD (20.0%); and the Kyrgyz State Property Committee (SPC) (10.0%). Additionally, because it provided concessional loans to the Kyrgyz government for the purchase of shares in the Bank and for a credit line facility to the Bank, KfW is a co-founder but not a shareholder. |
|
| Total project cost and proposed IFC investment |
| IFC’s proposed investment is a long-term loan of $2.5 million. |
|
| Location of project and description of site |
| KICB is headquartered in Bishkek. |
|
| Project Development Impact and IFC's Role |
With this project, IFC is expected to continue its high impact contribution to economic development, poverty reduction, and financial sector development in Kyrgyz Republic. The project is intended to support KICB to finance medium- to long-term sub-projects and facilitate a greater degree of private sector participation in the economy. It will improve and increase access to term finance for a key sector to the development of Kyrgyz Republic, the SMEs, who are the Bank’s primary client base. A further and long-term benefit could be reduced costs for the SMEs as competition among banks intensifies and productivity improvements for SMEs that uses the financing to upgrade their productive capacity. Additionally, capital investment requirements of SMEs in Kyrgyz Republic are currently not met by existing banks. Expansion of financing available for the large under-served group of SMEs by KICB will directly contribute to employment generation and raise incomes for the poor.
In this project, IFC will:
- assist KICB in developing access to term finance on commercial terms without a government guarantee;
- help one of the most active lenders to the private sector in Kyrgyz Republic to expand its financings of SMEs;
- improve access to long-term finance for SMEs in Kyrgyz Republic. |
|
| Environmental and social issues - Category FI-1 |
This is a category FI Type 1 project according to IFC’s environmental and social review procedure. KICB follows EBRD’s guidelines in appraising subprojects for environmental risks and in reviewing portfolio subprojects; and, all KICB staff involved in evaluating credit proposals have attended environmental risk management workshop in 2003 under an EBRD-sponsored technical assistance program.
|
|
| To contact the project company, please write to: |
Kwang-Young Choi
Chief executive Officer
Kyrgyz Investment & Credit Bank
28-A, 12th floor
South Gate Business Center
8 Mikrorayon, Bishkek 720075
Kyrgyz Republic
Phone: +996 (312) 512380, 690555
Fax: +996 (312) 512306, 690560 |
|
|
|