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Kazakh KMF to receive loan from EBRD for supporting young entrepreneurs

Kazakhstan Materials 8 May 2024 19:31 (UTC +04:00)
Madina Usmanova
Madina Usmanova
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ASTANA, Kazakhstan. May 8. The European Bank for Reconstruction and Development (EBRD) will provide a senior loan in the amount of up to $10 million (in US dollar or Kazakhstan tenge equivalents to be determined at disbursement) to Microfinance Organization KMF, Trend reports.

The EBRD reports that the loan received approval on April 23, 2024.

As the Bank explains, the loan will be provided under the Youth in Business Financing Programme for Central Asia, which will be rolled into a blended finance program under the Financial Intermediaries Framework.

The loan's goal is to launch a new product encompassing both financial and non-financial services targeted at young entrepreneurs to increase their access to finance and skills in the economy, diversify KMF's funding base, and enhance KMF's product range via new digital sales channels.

Meanwhile, KMF, a client of the EBRD since 2005, is the largest private MFO in Kazakhstan, with a market share of 20.8 percent, total assets of $633 million, total equity of $114 million, over 257,000 active clients, and 117 offices as of the end of 2023.

MFO KMF's principal shareholders are one local and four international funds, with a joint stake of 93.8 percent. The company is rated B+ by Fitch (December 11, 2023), with a stable outlook.

Furthermore, the EBRD's current project portfolio in Kazakhstan reaches 2.8 billion euros as of February 29, 2024, based on the implementation of 119 active portfolio projects.

In addition, the bank has invested about 10 billion euros in 317 projects in Kazakhstan. Kazakhstan is the EBRD's largest and longest-running Central Asian banking business.

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