ADB, Kompanion Bank Sign Deal to Boost MSME Financing in Kyrgyz Republic
BISHKEK — The Asian Development Bank (ADB) and Kompanion Bank Closed Joint Stock Company signed a senior loan of up to $5 million in local currency financing to boost micro, small, and medium-sized enterprises (MSMEs) in the Kyrgyz Republic, especially those owned or led by women.
“Women account for about a third of the entrepreneurs in the Kyrgyz Republic, but they nevertheless face significant challenges in accessing financial services and credit,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This partnership with Kompanion Bank will help bridge the financing gap for women-led small businesses as well as provide a strong case for the sustainability of local currency lending to these companies.”
To strengthen development impact and to address finance and bankability constraints, transaction incorporates a credit guarantee from Asian Development Fund’s (ADF) Private Sector Window facility (PSW) of up to $2.3 million. ADB will also provide a technical assistance to Kompanion Bank to enhance its digital capabilities and operational efficiency.
“We are happy to be a partner with ADB in this initiative to support micro and small entrepreneurs in the Kyrgyz Republic. We believe that our experience in the MSME market will allow us to make a significant impact on the local economy, and we look forward to working closely with ADB for the benefit of our clients and the community” said Kompanion Bank CEO Margarita Cherikbaeva.
ADB will also help Kompanion Bank to develop a gender action plan to promote gender equality and women’s empowerment in its business activities. Key activities will include increasing the number of women borrowers and delivering training on improved agricultural practices and digital and financial literacy for women clients.
Established in 2004, Kompanion Bank is one of the large commercial banks in the Kyrgyz Republic amd dominates the MSME market through its wide network with 93 branches across the country. More than half of Kompanion’s portfolio is with micro and small enterprises.
The PSW is a facility approved by ADB donors in 2020 to support private sector development in frontier markets. It offers grant resources to fund financial products that address and reduce common financing constraints that hinder many private sector transactions. The ADF provides grants to ADB’s poorest and most vulnerable developing member countries.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.