ASTANA, Kazakhstan, October 25. To improve access to finance for micro and small enterprises (MSEs) and women-owned small businesses in Kazakhstan, IFC is investing in LLP Microfinance Organization Shinhan Finance (Shinhan Finance), Trend reports.
The financing will allow Shinhan Finance to continue providing much-needed longer-term loans and enhance the resilience of smaller enterprises, which are critical for economic growth and job creation.
Up to a $60 million financing package, of which the first tranche of $20 million has been committed, will be disbursed in local currency over the next few months to Shinhan Finance. The proceeds will be lent to MSEs, of which at least 25 percent will be earmarked for women-owned small businesses.
In addition, IFC supported the development and implementation of Shinhan Finance's environmental and social management system, helping build the proper capacity to manage its environmental and social risks.
Shinhan Finance is a subsidiary of Shinhan Card, which is wholly owned by Shinhan Financial Group, headquartered in Seoul, Republic of Korea. On May 24, 2023, IFC signed a Memorandum of Understanding with Shinhan Financial Group for comprehensive business cooperation, and this is IFC's first investment with the group.
In Central Asia, IFC has been ramping up its work to expand financial services and market access for women-led firms. Since 2018, IFC has invested $155 million in 15 local financial institutions across the region.
In fiscal 2023, IFC made a record investment in emerging markets, which are expected to improve access to finance for MSMEs through the provision of 2.2 million loans.
