MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Expected to Loan $5m in Local Currency to Imon International of Tajikistan

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution that finances development projects in Eastern Europe, Central Asia and North Africa, is expected to issue a four-year, senior loan worth the local-currency equivalent of USD 5 million to Imon International, a microfinance institution (MFI) based in Tajikistan, to increase its lending to small-and medium-sized enterprises (SMEs). The investment is expected to be signed by Sir Suma Chakrabarti, the president of EBRD, during a field mission in Dushanbe, Tajikistan.

Sanavbar Sharipova, the CEO of Imon International, was quoted as saying that “EBRD’s financing will help us increase the supply of affordable credit to farmers, micro and small businesses, as well as female entrepreneurs […] We also plan to open additional branches, expand credit for agriculture and strengthen rural financing.” EBRD became a shareholder of Imon International in 2013 and has invested USD 15 million via seven loans since 2005.

As of December 2012, Imon reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 85.6 million, a gross loan portfolio of USD 68.5 million, return on assets (ROA) of 5.87 percent, return on equity (ROE) of 26.93 percent and 58,000 active borrowers. EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and reported total assets of EUR 49 billion (USD 65 billion).

By Simon Pfanner, Research Associate

About Imon International

Imon International LLC is a microfinance institution (MFI) in Tajikistan offering lending, leasing, consulting and advisory services to small enterprises, microfinance institutions and small banks. Imon was founded by the National Association of Business Women of Tajikistan, a government-backed organization, and US-based nonprofit Mercy Corps in 1999 as “Microloans in Tajikistan”. In 2007, the founders transformed the organization into a commercial operation renamed Imon International LLC. As of 2014, Imon served 83,000 customers and had 127 branches and service outlets. As of December 2012, Imon reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 85.6 million, gross loan portfolio of USD 68.5 million, return on assets (ROA) of 5.87 percent, return on equity (ROE) of 26.93 percent and 58,000 active borrowers. The institution accepts deposits, but financials have not been disclosed.

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and reported total assets of EUR 49 billion (USD 65 billion).

Sources and Additional Resources

[1] EBRD Press Release, EBRD and IMON International increase funding for MSEs in Tajikistan

MicroCapital, December 16, 2013, European Bank for Reconstruction and Development (EBRD), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO) Buy 25% of Microfinance Institution Imon of Tajikistan for $6.5m

MicroCapital, January 18, 2013, European Bank for Reconstruction and Development (EBRD) Loans $6m in Local Currency to IMON International of Tajikistan

MicroCapital Universe Profile: Imon International

MicroCapital Universe Profile: European Bank for Reconstruction and Development (ERBD)

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