ASTANA, Kazakhstan, May 8. The European Bank for Reconstruction and Development (EBRD) will provide a senior loan in the amount of up to $15 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 26, 2024.
The bank clarifies that it will provide the loan under the Kazakhstan Women in Business Programme II, which is part of the Financial Intermediaries Framework. The financing will be used for on-lending to eligible women-led private micro, small, and medium enterprises (MSMEs) in Kazakhstan.
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.