MICROCAPITAL BRIEF: Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $10m to Kyrgyz Investment and Credit Bank (KICB)

The Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) recently signed an agreement to loan USD 10 million to Kyrgyz Investment and Credit Bank (KICB), a commercial bank in Kyrgyzstan. While the terms and purpose of the loan have not been disclosed, KICB used a previous USD 10 million investment from FMO in 2009 to finance Kyrgyzstan’s rural sector. According to FMO, the majority of KICB’s clientele consists of individuals operating small and medium-sized enterprises (SMEs).

KICB serves 60,000 clients through 18 branches in the country. Financial data on the firm is available on its Annual Report. KICB’s largest shareholder is Switzerland-based nonprofit Aga Khan Fund for Economic Development with a stake of 21 percent. FMO is majority-owned by the Dutch government, with commercial banks, trade unions, employers’ associations and individual investors holding smaller stakes. In 2012, FMO reported total assets of EUR 5.6 billion (USD 7.3 billion).

By Meraj Husain, Research Associate

About Kyrgyz Investment and Credit Bank (KICB)

Kyrgyz Investment and Credit Bank (KICB) is a commercial bank in Kyrgyzstan that was established in 2000. KICB’s shareholders include Switzerland-based nonprofit Aga Khan Fund for Economic Development (21 percent), Pakistani commercial bank Habib Bank Limited (18 percent), the UK-based financial institution European Bank for Reconstruction and Development (17 percent), the US-based World Bank Group’s private investment arm International Financial Corporation (17 percent), German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) (17 percent) and the Kyrgyz Government (10 percent).

About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. In 2012, FMO reported total assets of EUR 5.6 billion (USD 7.3 billion).

Sources and Additional Resources

[1] Financierings-Maatschappijvoor Ontwikkelingslanden (FMO): “Kyrgyz Investm. and Credit Bank CJSC,” http://www.fmo.nl/project-details/30961

[2] Kyrgyz Investment and Credit Bank (KICB): “KICB Signed Credit Line Agreement for USD 10 Million with FMO,” http://en.kicb.net/about/news/79/

[3] Financierings-Maatschappijvoor Ontwikkelingslanden (FMO): “FMO Signs Deal for First Transaction in Kyrgyzstan,” https://www.fmo.nl/k/n114/news/view/1184/179/fmo-signs-deal-for-first-transaction-in-kyrgyzstan.html

MicroCapital, January 29, 2014, “Kompanion Financial Group of Kyrgyzstan Receives Syndicated Loan of $12m from European Bank for Reconstruction and Development (EBRD), Nederlandse Financerings Maatschappijvoor Ontwikkelingslanden (FMO),” https://www.microcapital.org/microcapital-brief-kompanion-financial-group-of-kyrgyzstan-receives-syndicated-loan-of-12m-from-european-bank-for-reconstruction-and-development-ebrd-nederlandse-financierings-maatschappijvoor-on/

MicroCapital, November 28, 2013, “Netherlands Development Finance Company (FMO) Issues $675m in Bonds to Fund Inclusive, Renewable Energy, Agriculture, Other Projects,”https://www.microcapital.org/microcapital-brief-netherlands-development-finance-company-fmo-issues-675m-in-bonds-to-fund-inclusive-finance-renewable-energy-agriculture-other-projects/

MicroCapital, January 12, 2010, “European Bank for Reconstruction and Development (EBRD) Extends $5m Long-Term Loan to Kyrgyz Investment and Credit Bank (KICB) for On-Lending to Small and Medium Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-extends-5m-long-term-loan-to-kyrgyz-investment-and-credit-bank-kicb-for-on-lending-to-small-and-medium-enterprises-smes/

MicroCapital Universe Profile: Kyrgyz Investment and Credit Bank (KICB) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kyrgyz+Investment+and+Credit+Bank+%28KICB%29

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

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