KOMPANION BANK CJSC
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
Kompanion Financial Group is a community development financial institution that seeks to combine conservation and development goals. It is a microfinance institution that supports the strengthening and growth of communities by offering development products and services to entrepreneurs and individuals all over Kyrgyzstan. Currently, Kompanion is one of the largest financial institutions in Kyrgyzstan in terms of number of consumers. Kompanion represents the culmination of 12 years of work by Mercy Corps in microfinance, and its desire to leave an enduring and sustainable community development financial institution as its legacy to the people of Kyrgyzstan. Kompanion is a young but quickly growing institution that promises to become the leading community development bank in Kyrgyzstan.
What is our funding objective?
The European Bank for Reconstruction and Development (EBRD) extended a syndicated loan totalling a Kyrgyz som equivalent of US$ 12 million to Kompanion, already a long-standing client of the EBRD. The syndicated three-year loan comprises an A-loan from EBRD of up to US$ 4 million and a B-loan from FMO of up to US$8 million. The loan is consistent with the EBRD's and FMO's country strategy for the Kyrgyz Republic, which aims to extend local currency lending in order to build up local sources of funding and to reduce the use of foreign exchange in the country's financial system.
Why do we fund this investment?
The proceeds of the syndicated loan will allow Kompanion to expand its lending operations to micro-, small- and medium-sized enterprises (MSMEs), especially in rural areas. It will also reduce Kompanion's exposure to the risk of sharp fluctuations in foreign currency exchange rates. This risk is particularly relevant to microfinance institutions (MFIs). In the past, MFIs have received only foreign currency funding, and their opportunities for hedging have been constrained. With this loan we would like to extend local currency financing to more Kyrgyz businesses, to help them avoid foreign currency exchange risk. Kompanion has a well-established network and good country coverage. These will be used to channel financing to more beneficiaries across the Kyrgyz Republic to support growth of the country's economy. Kompanion CEO Ulanbek Termechikov said: "As a microfinance institution focused on community development, Kompanion is pleased to have this opportunity to expand access to funding for rural micro entrepreneurs, who are mainly engaged in agricultural production throughout the Kyrgyz Republic."
More investments
| Date | Total FMO financing |
|---|---|
| 10/14/2022 | EUR 0.15 MLN |
| 9/26/2023 | USD 3.00 MLN |
| 8/9/2021 | USD 7.00 MLN |
| 5/9/2017 | EUR 0.07 MLN |
| 12/15/2014 | KGS 263.68 MLN |
- Website customer/investment
- http://www.kompanion.kg/index.php?lang=en
- Region
- Europe & Central Asia
- Country
- Kyrgyzstan
- Sector
- Financial Institutions
- Effective date
- 12/13/2013
- End date
- 2/1/2017
- Total FMO financing
- USD 8.00 MLN
- Funding
- FMO NV
-
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