The European Bank for Reconstruction and Development (EBRD) is providing a US $ 5 million loan to Kompanion Bank CJSC to help small businesses in the Kyrgyz Republic modernize production, improve efficiency, and address pressing environmental issues such as water scarcity, erosion, and soil degradation.
Companion Bank CJSC, an EBRD client since 2007, became the first domestic financial institution to join the recently approved Kyrgyz Republic Green Economy Facility III (KyrSEFF III), which aims to promote green and sustainable lending. The EBRD loan will help finance energy and water efficiency projects, especially in agriculture, housing, and communal services and the micro-, small- and medium-sized enterprise (MSME) sector. To avoid currency risks, sub loans will be provided in Kyrgyz soms.
Potential borrowers will have access to energy-saving technologies available through the online technology selector on the KyrSEFF III website. The selector also helps local businesses find approved manufacturers and suppliers of relevant materials and equipment. Bank Companion Bank CJSC, one of the largest MSME lenders in the country, will receive technical assistance and co-investment grants under KyrSEFF III.
To date, the EBRD has invested € 879 million in 221 projects in the Kyrgyz Republic. At the same time, most of the Bank’s funds are aimed at supporting private entrepreneurship.
