KICB-FY24 (IFC-49361)

Countries
  • Kyrgyzstan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
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
C
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
Aug 15, 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
CJSC Kyrgyz Investment and Credit Bank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
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)
$ 15.00 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 @ IFC website

Updated in EWS Sep 18, 2024

Disclosed by Bank Jul 5, 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 Bank’s website, the proposed Project consists of IFC’s investment in a $15mn unsecured bond denominated in Kyrgyz Som (KGS or LCY) to be issued by CJSC Kyrgyz Investment and Credit Bank (KICB or the Bank), a long-standing IFC client, to increase access to finance for underserved individuals and micro-enterprises (MEs), including women-owned MEs (WMEs) in the Kyrgyz Republic, as the economy is recovering from the COVID-19 crisis, further exacerbated by Russia’s invasion of Ukraine (the Project). KICB will use the IFC’s loan proceeds to provide financing to its own clients (70%) and channel via local microfinance institutions (MFIs) (30%). 50% of the financing will be used to finance micro-housing projects for low-income individuals and 50% for micro-enterprises including WMEs.

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.

Overall E&S risks associated with the project are considered to be low and carry minimal or no adverse environmental or social impacts. The project therefore has been classified as category FI-3. 

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

The proposed Project consists of IFC’s investment in a $15mn unsecured bond denominated in KGS from IFC’s own account.

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.

KICB's current shareholders include AKFED (72%), Habib Bank Limited (18%), and the Kyrgyz Republic (10%). AKFED is the key strategic shareholder and sponsor of KICB and long-term IFC counterparty. With over 40 joint projects in Africa, South and Central Asia, IFC and AKFED have a long history of partnership. IFC’s experience with AKFED Group has been positive as AKFED has proven to be a strong and committed sponsor.


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.

CJSB “Kyrgyz Investment and Credit Bank” (KICB)
Elena Bubnova
Management member
(+996 312) 620 101
ElenaB@kicb.net
21 Erkindik St, Bishkek 720021 Kyrgyz Republic
www.kicb.net

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works