Kyrgyz Investment and Credit Bank (KICB) (debt & equity)

complete

The project supports an increase in the private sector financing available through the banking system and facilitates new investments. The introduction of term lending and other corporate services demonstrates to the existing local banks the potential in this area. The presence of the EBRD and other institutional shareholders encourages other bank investors into the market. The development of skills in the local management team creates a core pool of expertise in the banking system, which helps in time to improve the level of skills in other banks. KICB is the fifth largest private bank in the Kyrgyz Republic by total assets, with 6.5% of total banking sector assets and 9.6% of net loans. The initial investment of USD 1.4 million was disbursed in June 2001. The proposed capital increase is expected to occur in December 2006. USD 1.7 million (including capital increase) KICB is already implementing environmental procedures satisfactory to the EBRD. KICB does not finance activities listed on the EBRD’s environmental exclusion list and submits environmental report to the EBRD annually. In relation to the capital increase, KICB will be required to continue to implement the procedures across all its operations, to report annually on environment, health and safety matters to the EBRD. USD 3.0 million, allocated from Japan, funded the start-up costs of KICB and the costs of expatriate management and banking experts for the first three years. Bektur Aliev, KICB Chief Operations Officer, email: bektura@kicb.net