BAKU, Azerbaijan, May 24. Kyrgyzstan’s Bank Kompanion, in collaboration with international partners, has established criteria for the further allocation of funds in the amount of $5 million provided by the European Development Bank (EBRD), a source at the Kyrgyz bank told Trend.
The funds will be provided by EBRD to Bank Kompanion, so it can further subloan it to small enterprises (SMEs) to support energy and water efficiency projects in Kyrgyzstan.
The target audience of the project is the individuals and businesses in various sectors, including agriculture, housing and utilities, and the micro, small, and medium-sized enterprise (MSME).
The focus of these loans will be on improving energy efficiency in both private and business premises. Potential borrowers will also have the opportunity to utilize energy-saving technologies to enhance their energy performance.
"Bank Kompanion has a successful history of partnering with EBRD in credit agreements aimed at supporting MSMEs and energy efficiency projects, such as the KyrSEFF initiative. Kompanion primarily provides serves for individual entrepreneurs and small and medium-sized businesses, so it does not finance large-scale projects," the source said.
Among international shareholders of Bank Kompanion are Mercy Corp International Humanitarian Organization, Dutch Entrepreneurial Development Bank (FMO), and Triodos Investment Management. Furthermore, the bank recently became a member of the Global Alliance for Banking on Values (GABV).
In its ongoing efforts to expand its partnerships, Bank Kompanion is currently undertaking preparatory work to sign credit agreements with the Asian Development Bank and the International Finance Corporation.
These agreements will focus on directing credit resources towards MSME financing, supporting women entrepreneurs, and facilitating "green" financing projects.