Early Warning System

Countries

Kyrgyzstan

Geographic location 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

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Nov 18, 2022

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Kompanion Bank

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

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, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 5.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 5.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Primary Source

Original disclosure @ EBRD website

Updated in EWS Oct 28, 2022

Disclosed by Bank Oct 13, 2022

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The provision of a senior synthetic Kyrgyz Som (KGS) loan of up to US$ 5 million to Kompanion Bank (KB) under the Kyrgyz Republic GEFF (KyrSEFF III ). The proceeds will be on-lent to sub-borrowers for energy efficiency, renewable energy, circular economy, and climate resilience investments. The project will further strengthen SME competitiveness, improve climate resilience and promote the financial sector development in particular through local currency lending.

The transaction will contribute towards building a more competitive financial sector through developing the internal capacity of KB for financing energy and water efficiency projects. This will be achieved through a technical assistance aimed at providing implementation support to KB and their customers, verification of the outcomes, and investment incentives to end borrowers. Sub-projects are selected according to technical and financial eligibility criteria set forth in the policy statement for KyrSEFF III. 100 per cent of the proceeds will be used for Green Economy Transition investments.

TRANSITION IMPACT

The project will contribute towards building a green economy by facilitating the expansion of energy/water efficiency lending to residential and commercial sectors in the Kyrgyz Republic and positive demonstration effects of energy/water efficiency projects.

CLIENT INFORMATION

KOMPANION BANK CJSC

Kompanion Bank is an existing client since 2007 and a major SME lender in the Kyrgyz Republic. KB maintains a strong market presence with 8th ranking by loan portfolio and 9th by total assets among 23 commercial banks in the country. The bank is majority-owned by Mercy Corps (USA).

EBRD FINANCE SUMMARY

USD 5,000,000.00

Synthetic KGS senior loan of up to US$ 5 million equivalent for on-lending to eligible private micro, small and medium-sized enterpreneurs (MSMEs) for financing GET Investments. The tenor will be 3 years including a 1 year grace period.

TOTAL PROJECT COST

USD 5,000,000.00

ADDITIONALITY

Additionality will be achieved through a combination of: (i) much-needed medium-term financing in local currency; (ii) innovative financing structure and instruments, (iii) standard-setting and (iv) knowledge, innovation and capacity building.

Gender additionality is expected to be achieved by building the capacity of the company in gender-responsive green lending in addition to supporting equal access to green finance for women and men.

ENVIRONMENTAL AND SOCIAL SUMMARY

Category FI (2019 ESP). Kompanion Bank is a long-standing client of the Bank that has been performing well in terms of applying the Bank's PRs and reporting in a timely fashion. The client will continue to apply PRs 2 and 4 to their internal operations and PR9, coupled with the E&S Procedure for Corporate SME and Micro Loans. Under the 2019 policy, the client will require to take note of the Referral List and liaise with the EBRD in any transactions involving activities on that list, and also take note of the updated E&S Exclusion List. Any investments in renewable energy will be required to follow the Bank's procedures and guidance for such sub-projects. The EBRD funding may be used for financing solar PV technologies. Such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35) and any subsequent guidance developed under that approach.

TECHNICAL COOPERATION AND GRANT FINANCING

Kompanion Bank will continue to receive support from Facility Consultant under KyrSEFF III TC Programme in matters of marketing, project origination and preparation, overall successful management and implementation of the Facility, in a gender-responsive way.

Funding source: Shareholder Special Fund and potentially other donors.

COMPANY CONTACT INFORMATION

Saltanat Dzhantemirovahttps://www.kompanion.kg/62, Shota Rustaveli
St.,720044, Bishkek, Kyrgyzstan

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Kompanion Bank (Financial Intermediary)

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project contacts not available at the time of disclosure.

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

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.

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