Agroinvestbank Equity Investment

disbursing

The EBRD is considering acquiring a 25% + 1 share of the ordinary voting shares of Agroinvestbank through acquisition of newly issued shares via capital increase. The proposed transaction will strengthen the capital base and support the growth and development of one of the largest and most successful banks in Tajikistan. The proposed equity investment in the second largest commercial bank in the country is expected to have high transition impact, particularly in relation to the following: 1) Growth and development of a leading bank in Tajikistan thereby promoting greater competition 2) Enhance reputation and increase access to commercial funding leading to market expansion 3) Provide guidance, institution building and set the standards of practice for local banks through improved corporate governance and business conduct. Agroinvestbank is the second largest commercial bank in Tajikistan, focused on providing financial services to micro-, small- and medium-sized enterprises and to the agricultural sector. Equity investment for up to 25% +1 share of the shares in Agroinvestbank. USD 15 million. Screened FI. AIB is an existing Bank client and its environmental reporting has been satisfactory to date. For the upcoming operation, AIB is required to continue to implement the Bank's Environmental Procedures for Local Banks across all its operations which include compliance with the FI Exclusion and Referral List, and submission of an Annual Environmental Report to the Bank. Agroinvestbank has been a recipient of TC under the Tajik Micro and Small Enterprise Financing Facility (TMSEFF), funded by Early Transition Countries Fund (ETCF), United States (USSP), UK (UKTA) and EC (EIPF); the Tajikistan Agricultural Financing Facility (TAFF), funded by Shareholders Special Fund (EBSF), ETCF and Luxembourg (LUX) so far; and a Corporate Governance TC funded by the ETCF. It is envisaged that the equity investment will be supported by a comprehensive TC in the amount of USD 1.5 million for Institution Building. The TC assignment will focus on corporate governance, strategic review and organisational restructuring, business development, HR (including gender equality), operations review and risk management; the main objective being the development of Agroinvestbank into a modern, efficient bank. Muhammadi Boboev Deputy Director of International Financial Relations Department OJSC “Agroinvestbank” 21 Saadi Sherozi Ave. Dushanbe 734018, Tajikistan Tel.: 992-37 -235 75 56 Fax: 992-37 -235 75 56 E-mail: mboboev@agroinvestbank.tj