FMO Arranges USD15 Million Loan Syndication to FINCA Bank Kyrgyzstan
28 August, 2015, Bishkek – Today, FINCA Bank Kyrgyzstan announced that the Netherlands Development Finance Company (FMO) has reached agreement on a USD 15 million local currency syndicated loan facility for on-lending to micro and small businesses in Kyrgyzstan. FMO will contribute USD 10 million and an additional USD 5 million is expected from another international lender.
This transaction is the second syndication arranged by FMO for a subsidiary of FINCA International, following the USD 40 million deal for FINCA Azerbaijan in November 2014.
This five-year loan will support FINCA Bank Kyrgyzstan’s efforts in servicing over 15,000 entrepreneurs, particularly in rural and remote areas where the supply of banking services is still limited. The local currency facility is entirely in Kyrgyz Som, helping FINCA Bank Kyrgyzstan to sustain its local-currency loan portfolio, reducing currency risk for its clients.
FINCA Bank Kyrgyzstan currently provides a range of financial services – including individual and agricultural loans, savings accounts, and money transfers.
Nanno Kleiterp, FMO’s Chief Executive Officer, said: “By supporting micro and small entrepreneurs in Kyrgyzstan, the economy will grow, bringing opportunity and financial inclusion to a larger part of the population. We are therefore very pleased to finance FINCA Bank Kyrgyzstan, an institution reaching out to remote areas and serving more than 125,000 clients.”
Margarita Cherikbaeva, Chief Executive Officer of FINCA Bank Kyrgyzstan, thanking FMO, said: “This is a substantial expansion in funding received from FMO and is our first syndicated loan facility. This key transaction will allow us to expand the financing of small businesses, especially in the agricultural sector and across the rural regions of Kyrgyzstan.”
”This landmark syndication is particularly strategic for FINCA Bank Kyrgyzstan, as it marks the start of a partnership with two international financial institutions that are very active in supporting microfinance,” remarked Azamat Maksytbekov, Chief Financial Officer of FINCA Bank Kyrgyzstan. “We look forward to cooperating with FMO and other international lenders on many initiatives in the field of responsible banking, helping to further diversify the Kyrgyz economy.”
About FINCA Bank Kyrgyzstan
FINCA Bank CJSC is the leading microfinance bank in Kyrgyzstan, operating in the country since 1995. On March 3, 2015, FINCA Bank Kyrgyzstan received a commercial banking license from the National Bank of the Kyrgyz Republic. FINCA Bank Kyrgyzstan provides full range of financial services to more than 125,000 active clients through its 104 branches covering the country, with a gross loan portfolio of more than USD 125 million.
About FINCA International
FINCA International’s mission is to alleviate poverty through lasting solutions that help people build assets, create jobs, and raise their standard of living. Together with leading, socially responsible investment partners, FINCA owns and operates a network of microfinance institutions serving nearly 2 million clients in 23 countries. For more information on FINCA, visit www.FINCA.org.
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8.8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl