MICROCAPITAL BRIEF: Kompanion Financial Group of Kyrgyzstan Receives Syndicated Loan of $12m from European Bank for Reconstruction and Development (EBRD), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, has announced that it has arranged a three-year syndicated loan in local currency equivalent to USD 12 million for Kompanion Financial Group, a microfinance institution (MFI) in Kyrgyzstan [1]. Of the total amount, Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) has committed USD 8 million while EBRD will be providing USD 4 million. The loan is intended to support the MFI’s lending to micro-, small and medium sized enterprises (MSMEs).

As of 2012, Kompanion reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 77.8 million, a gross loan portfolio of USD 54.9 million, return on assets (ROA) of 0.64 percent, return on equity (ROE) of 3.29 percent and 116,700 active borrowers. Kompanion does not accept deposits.

In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Nisha Koul, Research Associate

About Kompanion Financial Group: Kompanion Financial Group Microfinance Closed Joint Stock Company was established in Kyrgyzstan in 2004 through the consolidation of five microcredit agencies affiliated with Mercy Corps, an economic development and aid organization based in the United States. Kompanion describes itself as a “community development financial institution that seeks to combine conservation and development goals.” As of 2012, Kompanion reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 77.8 million, a gross loan portfolio of USD 54.9 million, return on assets (ROA) of 0.64 percent, return on equity (ROE) of 3.29 percent and 116,700 active borrowers. The institution does not accept deposits.

About European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries 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). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources:

[1] EBRD News, “EBRD supports small businesses in Kyrgyz Republic,” http://www.ebrd.com/pages/news/press/2013/131216a.shtml

MicroCapital Story, January 25, 2014, “European Bank for Reconstruction and Development (EBRD) Invests $60m in Banque Marocaine du Commerce Extérieur’s Eurobond Issue for Micro-, Small, Medium-Sized Enterprises in Morocco,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-invests-60m-in-banque-marocaine-du-commerce-exterieurs-eurobond-issue-for-micro-small-medium-sized-enterprises/

MicroCapital Story, September 9, 2011, “European Bank for Reconstruction and Development (EBRD) to Loan $4m in Local Currency to Microfinance Institution (MFI) Kompanion of the Kyrgyz Republic, http://www.microcapital.org/microcapital-brief-europrean-bank-for-reconstruction-and-development-ebrd-to-loan-4m-in-local-currency-to-microfinance-institution-mfi-kompanion-of-the-kyrgyz-republic/

MicroCapital Universe Profile, Kompanion Financial Group, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kompanion+Financial+Group+Microfinance+Closed+Joint+Stock+Company

MicroCapital Universe Profile, European Bank for Reconstruction and Development (EBRD), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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