GCF GEFF Regional II - FMFB Loan I (EBRD-55156)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Tajikistan
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
May 7, 2024
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
First Micro Finance Bank CJSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • 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)
$ 3.00 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)
$ 3.00 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.
Project Cost (USD)
$ 4.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jun 12, 2024

Disclosed by Bank May 16, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

According to the EBRD, the project consists of the provision of a senior loan of up to US$ 4 million to FMFB, of which up to US$ 3 million (in TJS equivalent) to be provided by the EBRD and up to US$ 1 million by the GCF under the GCF-Green Economy Financing Facility Regional Framework (GCF GEFF II Tajikistan Programme).

The proposed operation complies with the GCF GEFF Regional Framework criteria. The proposed transaction under the GCF GEFF Regional Framework will be a subsequent transaction with FMFB following a previous transaction under TajCREFF. Proceeds of the loan will be allocated to finance climate change mitigation and adaptation technologies. The transaction will support further expansion of FMFB's product offerings with green lending products, in a gender responsive way.

The project contributes to the objectives of the GCF-GEFF Regional Framework, and in particular of the GCF GEFF II Tajikistan Programme (GEFF Tajikistan II), supporting the Green TI quality in line with the GET TI rating methodology, with 100 per cent of the use of proceeds allocated to GET activities. The project will contribute to Programme's objective of providing support to building a green economy in Tajikistan by facilitating the accelerated market penetration of climate technologies, particularly focusing on promotion of climate resilience and resource efficiency technologies applicable to the agricultural sector and rural areas.

A green policy engagement component is included under the GEFF Tajikistan II Programme level. The key activities and deliverables of the policy dialogue is institutional reform in the financial sector in Tajikistan, to be achieved by supporting the National Bank of Tajikistan in adoption of a regulation aimed at addressing climate risk, primarily through voluntary disclosures. The regulation is expected to follow international best practice, principally following recommendations from the Network of Central Banks and Supervisors for Greening the Financial System, and taking into consideration the latest EBRD Paris Alignment approach for Indirect Finance. This policy topic is identified as a priority in the latest Country Strategy for Tajikistan 2020-2025 (BDS/TA/19-01/F).

Within two years from signing, FMFB will aim to submit to the EBRD a transition plan, which will set out time-bound targets, actions and milestones through which FMFB will improve its business practices in relation to climate change, progressively leading to the alignment of its financing activities with the goals of the Paris Agreement.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The EBRD categorized the project risk as 'FI'.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, Closed Joint Stock Company "The First Micro Finance Bank" (FMFB) operates as a fully-fledged universal commercial bank, offering a full range of banking services, primarily to retail and MSME segments in Tajikistan. FMFB was the eighth-largest bank by assets (with market share of 3 per cent) and the loan book (4 per cent) among Tajikistan banks as of end-2023.


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.

Financial Intermediary - First Micro Finance Bank CJSC:

Bezhan Kholiknazarov
Email: bezhan.kholiknazarov@fmfb.com.tj
Phone:+992 37 227-91-70 / +992 37 251-02-27
Website: www.fmfb.tj/en/
Address: CJSC "The First Microfinance Bank" 10 Pushkin Street, Dushanbe, Republic of Tajikistan

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

How it works

How it works