FIF - MFO Arnur Credit MSME Loan II (EBRD-51887)

Countries
  • Kazakhstan
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 21, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ARNUR CREDIT MICROFINANCE ORGANIZATION LLP
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 2.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 2.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 1, 2020

Disclosed by Bank Jul 28, 2020


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Project Description

 

According to EBRD site information, a loan of up to US$ 2m in KZT equivalent has been provided for on lending to private clients (MSMEs and individuals for business purposes), as a part of the Bank's response to the COVID-19 pandemic.

PROJECT OBJECTIVES

The provision by EBRD is given to the micro, small and medium-sized enterprises (MSMEs) with the purpose of the strengthening rural areas. 

ENVIRONMENTAL AND SOCIAL SUMMARY

Categorised FI (ESP 2014):AC will be required to comply with PRs 2, 4 & 9 and further comply with the EBRD's E&S Procedures for Mortgage Lending and EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and will be required to submit annual environmental and social reports to the Bank.

Categorised FI (ESP 2014):

TECHNICAL COOPERATION AND GRANT FINANCING

Similar to other partner financial institutions in Kazakhstan, AC will benefit from trainings under the EBRD Regional Small Business Programme for Central Asia i Technical Cooperation Programme (the "RSBP") (TCRS ID 7579, EUR 4.3m). The RSBP focuses on centralised knowledge sharing for banks, non-bank microfinance institutions and other facilitators of MSME-finance via an electronic knowledge sharing and exchange platform as well as seminars on specialised subjects. The RSBP was launched in Kazakhstan in January 2018 for the initial period of 4 years and provides access to trainings in areas of sound credit analysis, risk management, non-credit banking services for MSMEs and other relevant topics. In line with the EBRD policy on parallel cost sharing, AC will cover expenses related to staff participation in seminars and costs of regular portfolio reporting requirements.

 

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

ARNUR CREDIT MICROFINANCE ORGANIZATION LLP

Arnur Credit (AC) is a privately-owned microfinance organisation( MFO) in Kazakhstan with total assets of US$ 52m, total equity of US$ 13.8m, over 23,600 of active clients, 10 branches and 93 offices. AC is headquartered in Shymkent, an administrative capital of the Turkestan Region. It focuses on providing loans to micro, small and medium-sized enterprises and sole proprietors.

Contact Information

 

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

COMPANY CONTACT INFORMATION

Raushan Kurbanaliyevaraushan-k@arnurcredit.kz+7 701 781 81 45arnurcredit.kz10/2, Baitursynov str.,
Shymkent,
Kazakhstan