CJSC FINCA BANK
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Finca Bank (FB) is a global microfinance organization. Its institution in Kyrgyzstan was founded in 1995. Through a network of more than 100 branches and outlets located in different regions of the country, it serves around 124,000 low-income clients with loan products including individual and group loans. By loan portfolio size and number of clients, FB has the largest market share (20.6% and 31% respectively) and already is the sixth largest financial institution within Kyrgyzstan.
What is our funding objective?
By providing a local currency (LCY) facility with a tenor of 5 years, FMO provides scarce long-term financing in order to strengthen the client’s long term funding base and reduce (indirect) currency risk. FB predominantly lends in LCY whereas the majority of funding is in US$. In the current market it is very difficult (and expensive) to hedge positions due to the LCY liquidity shortage.
Why do we fund this investment?
FB reaches out largely to the (rural) underserved population segments to financially empower and enable them to participate in the economy and become more independent. The bank transformation will further increase outreach to the Kyrgyz population by stimulating employment and tax payments, particularly in the agricultural and trade sector.
- Region
- Europe & Central Asia
- Country
- Kyrgyzstan
- Sector
- Financial Institutions
- Effective date
- 8/28/2015
- End date
- 4/7/2020
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C