MICROCAPITAL BRIEF: IFC Invests $16.5m in Tajikistan’s Imon International to Support Micro-, Small, Medium-sized Enterprises

The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, recently mobilized a loan equivalent to USD 16.5 million to benefit Imon International, a microfinance institution (MFI) based in Tajikistan. The loan, issued in local currency, will be used to support micro-, small and medium-sized enterprises (MSMEs) in the country. Imon funds such organizations directly as well as via wholesale investments in other banks. IFC provided USD 5 million of the funding, while the France public-private partnership Societe de Promotion et de Participation pour La Cooperation Economique (Proparco) and the Austria-based OPEC Fund for International Development (OFID) contributed the remaining USD 11.5 million in unspecified portions.

According to Sanavbar Sharipova, Imon International’s CEO, “Our long-standing partnership with IFC was critical for attracting additional financing as it proved our sustainability and viability. With this financing package, we will be able to increase our credit and other product offerings for farmers, small businesses, and female entrepreneurs in Tajikistan.”

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. More recent financial information is unavailable. Imon also offers consulting, leasing and deposit services, although financial details of those operations are not available. In June 2014, IFC reported total assets of USD 1.4 billion, net income of USD 84.1 billion, return on assets of 1.8 percent and total investment mobilization of USD 38.1 billion.

By Ananya Tiwari, 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 in 1999 as “Microloans in Tajikistan” by the National Association of Business Women of Tajikistan, a government-backed organization, and US-based nonprofit Mercy Corps. In 2007, the founders transformed the organization into a commercial operation with its current name. As of 2014, Imon served 83,000 customers and had 127 branches and other 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 relating to that service have not been disclosed.

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported total assets of USD 84.1 billion and return on assets of 1.8 percent.

Sources and Additional Resources

[1] IFC Press Release, http://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/C2EA3E1C898685B785257DE7003DA5F9?opendocument

MicroCapital, November 22, 2014, European Bank for Reconstruction and Development (EBRD) Expected to Loan $5m in Local Currency to Imon International of Tajikistan, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-expected-to-loan-5m-in-local-currency-to-imon-international-of-tajikistan/

MicroCapital, March 11, 2014, Goldman Sachs, International Finance Corporation (IFC) Announce $600m Fund for Women-owned Small, Medium-Sized Enterprises (SMEs) https://www.microcapital.org/microcapital-brief-goldman-sachs-international-finance-corporation-ifc-announce-600m-fund-for-women-owned-small-medium-sized-enterprises-smes/

MicroCapital, January 27, 2014, International Finance Corporation (IFC) to Loan $150m to Yes Bank of India for On-lending to Women-Owned Micro-, Small, Medium-Sized Enterprises (MSMEs), https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-150m-to-yes-bank-of-india-for-on-lending-to-women-owned-micro-small-medium-sized-enterprises-msmes/

MicroCapital, November 26, 2013, International Finance Corporation (IFC) Issues $165m in Bonds to Support Women-owned Businesses, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-issues-165m-in-bonds-to-support-women-owned-businesses/

MicroCapital, February 8, 2013, International Finance Corporation (IFC), Yes Bank to Create Fund for Small Businesses in India, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-yes-bank-to-create-fund-for-small-businesses-in-india/

MicroCapital Universe Profile: Imon International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IMON+International

MicroCapital Universe: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

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