News Column

FMBT loan 2

May 19, 2014

Project Status : Active Project number : 34997 Region : Europe and Central Asia Company name : FMBT Country : Tajikistan Sector : O-AC - Commercial Banking - Microfinance Department : Reg Ind, Financial Markets, EMENA Environmental category : FI2 Status : Pend PDS-IR Date SPI disclosed : May 16, 2014 Projected board date : June 17, 2014 Last Updated Date : May 16, 2014 Project Description : The project involves a senior loan of up to US$2.5 million (or Tajik Somoni equivalent) to Closed Joint Stock Company The First MicroFinanceBank ( FMBT ), an existing IFC client and one of the leading microfinance providers in Tajikistan. The proceeds of the loan would be used by the bank for on-lending to micro, small and medium sized entrepreneurs ( MSMEs ). In conjunction with the loan, IFC plans to provide advisory services to FMBT to strengthen the bank s capacity in SME banking, a line of business which the bank has recently started developing. Project Sponsor and Major Shareholders of Project Company : FMBT has been operating since 2004. The bank s shareholders are the Aga Khan Agency for Microfinance ( AKAM ) holding 61.1% of shares, the Aga Khan Foundation Tajikistan ( AKF-T ) 15%, IFC 12.8% and KfW 11.1%. AKAM and AKF-T are members of the Aga Khan Development Network ( AKDN ). Total Project Cost and Amount and Nature of IFC%s Investment : The total project cost consists of a proposed senior loan of up to US$2.5 million (or Tajik Somoni equivalent) for IFC s own account. Location of Project and Description of Site : Headquartered in Dushanbe, FMBT runs its operations through a network of 7 branches and 28 banking service centers throughout Tajikistan. The bank is represented in remote and rural areas having outreach to the poorest regions. Expected Development Impact (i) Expanding access to finance for MSMEs, particularly small entrepreneurs and individuals in impoverished and rural areas, thus increasing banking penetration and financial inclusion (specifically amongst women entrepreneurs) in remote areas; and (ii) Job creation, poverty reduction and economic diversification through private sector-led growth in an anchor sector. IFC%s Expected Role and Additionality The proposed investment would have a strong additionality as it would: (i) provide much needed term finance to support dynamic growth and deepen the private sector lending capacity of FMBT, (ii) enable the bank to diversify its funding sources, hence improve its risk profile, and (iii) Support the bank with best international practices to strengthening its institution building. Environmental & Social Categorization Rationale The project has been categorized as category FI-2 according to the IFC Environmental and Social Review Procedure. The rational for categorization is based on the assessment of FMBT s current portfolio and its projected growth and diversification. The key sectors financed are trade, individual construc

Project completion date : 2015-05-31 12:00:00


Address : 105, Rudaki Avenue Dushanbe, Tajikistan Website :

Country :Tajikistan

Email :

Financier : International Finance Corporation (IFC),

Financier address : Financier : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 United States Website : Tel : (202) 473-3800 Fax : (202) 974-4384

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Source: TendersInfo (India)

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