BISHKEK, Kyrgyzstan, June 25. The International Finance Corporation (IFC) has agreed to invest up to $15 million in the country’s inaugural sustainability bonds, issued in local currency by the Kyrgyz Investment and Credit Bank (KICB), Trend reports via the IFC
The capital generated from the issuance will enable KICB to
enhance its portfolio of local-currency home microloans, amplify
funding for undercapitalized sectors, and bolster initiatives
focused on environmental sustainability. This strategic initiative
is anticipated to bolster economic resilience while promoting a
more equitable and environmentally sustainable growth paradigm.
As per the insights provided by the International Finance
Corporation, the availability of credit facilities continues to be
constrained within the financial ecosystem of Kyrgyzstan. A mere 14
percent of microenterprises and 32 percent of mid-tier firms
possess access to traditional banking credit facilities, as per the
analytics provided by the World Bank. The allocation of credit to
the private sector constitutes approximately 22 percent of the
Gross Domestic Product, whereas the financing deficit for small
enterprises is projected to be $3 billion, representing an
estimated one-fifth of the national economic output.
The sustainability bonds are seen as a milestone for local capital markets, setting a precedent for innovative financing instruments that align with development priorities. The initiative is supported by concessional financing from the International Development Association’s Private Sector Window.
The bonds will fund a mix of green and social projects—such as renewable energy, sustainable agriculture, affordable housing, and entrepreneurship. These efforts are designed to promote gender equality, job creation, and long-term economic resilience.
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