Almaty, Kazakhstan, April 13, 2018 – IFC,
a member of the World Bank Group, is providing a senior syndicated loan
of $82 million equivalent in Kazakh tenge to “Microfinance organization
“KMF” LLC, a leading Kazakh microfinance institution, to boost lending
to micro and small enterprises, including women entrepreneurs and customers
in rural areas of Kazakhstan.
The investment comprises a senior loan of $10 million for IFC’s own account
and a Hedged A-Loan Participation (HALP) of up to $72 million for the account
of leading international investors, and is the largest ever deal in the
microfinance sector of Kazakhstan. IFC uses the HALP, a syndication product
allowing IFC to sell U.S. dollar participation in a local currency-denominated
loan, to provide KMF with much needed local currency financing to support
its growth while protecting the investors from currency risk. The group
of committed investors consists of Invest in Visions GmbH; Incofin Investment
Management; Triple Jump V.A.; MicroVest Short Duration Fund; Bank im Bistum
Essen eG; Oikocredit, Ecumenical Development Cooperative Society U.A; and
Shalkar Zhussupov, chairman of KMF's management board, said the company
had significantly increased its outreach over the last two years by opening
new offices in remote areas. Its client base has also expanded from 150,000
to 220,000 borrowers, with its credit portfolio increasing from 34 to 90
billion Kazakh tenge. “There is huge demand for additional financing and
we are grateful to IFC for its help in bringing investments to Kazakhstan
to stimulate entrepreneurship and drive growth,” he said.
“With this investment, IFC plays a key role in the Kazakh microfinance
sector by mobilizing funding from international partners, securing local
currency hedging and extending the loan in local currency, thus increasing
access to local currency finance for underserved population in rural areas
of Kazakhstan and women entrepreneurs,” said Manuel Reyes-Retana, IFC
Regional Head for the Financial Institutions Group, Europe, Middle East
and North Africa.
This is IFC’s second HALP project to date while the first HALP structure
was used for KMF in 2017. Over the past several years, IFC has supported
KMF with a range of financial products totaling $131 million equivalent
in Kazakh tenge, including loans, risk management solutions as well as
advisory services to enhance its corporate governance.
For more information about KMF, please visit: http://www.kmf.kz
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.