BOP KICB-FY23

active

The proposed project consists of a 4-year senior unsecured loan of up to US$15 million denominated in Kyrgyz Som (KGS) to Closed Joint-Stock Company “Kyrgyz Investment and Credit Bank” (KICB or Bank), a long-standing IFC client, to be used to increase access to finance for underserved individuals and micro-enterprises (MEs) in the Kyrgyz Republic, including via microfinance institutions (MFIs), with a particular focus on sustaining affordable housing finance for low-income individuals and financing to women-owned MEs (WMEs) during a challenging economic environment caused by the COVID-19 crisis and further exacerbated by the Russian invasion of Ukraine (the Project). KICB will use IFC’s loan proceeds to provide financing to its clients (70%) and channel the rest (30%) via local MFIs. Furthermore, 50% of the financing will be used to finance housing projects to low-income individuals and 50% to WMEs. The Project will be processed under IFC’s COVID Base of the Pyramid Facility (#44915) and is expected to benefit from IDA-PSW Pooled First Loss Guarantee (“PFLG”) to help de-risk the Project and IDA-PSW Local Currency Facility (“LCF”) to support the local currency financing.