📋 Tender Overview
Location:
Kazakhstan
Project number:
56121
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
09 Apr 2025
Status:
Exploratory
English-language PSD published:
05 Mar 2025
Project Description
The provision of a senior secured loan of up to US$ 20 million in KZT equivalent to Bank CenterCredit JSC (BCC) under the Youth in Business Programme in Central Asia. The financing will be used to support youth-led and youth-owned micro, small and medium-sized enterprises in Kazakhstan. The YiB loan will be provided in two equal tranches, of which the second will be uncommitted.
Project Objectives
The proposed loan will enable BCC to (i) support youth led/owned MSMEs in overcoming the consequences of the challenging market environment and increasing their resilience and adaptability; (ii) diversify its funding base; and (iii) launch a new product encompassing both financing and nonfinancial services (NFS) targeted at young entrepreneurs, which will increase their access to finance.
Transition Impact
ETI score: 71
The project will contribute to the YiB CA Programme's objectives and support its Inclusive (Primary) and Competitive (Secondary) qualities. The facility is expected to increase lending to Youth MSMEs in Kazakhstan, facilitate BCC's capacity building and promote the transfer of skills to young business owners/ managers in the country.
Client Information
BANK CENTERCREDIT JSC
BCC is the third largest bank (out of 21) in Kazakhstan with total assets of US$ 12.6 billion, equity of US$ 1.2 billion and market shares of 10.5 per cent in total assets, 11.2 per cent in customer loans and 11.7 per cent in deposits as of end-September 2024. The bank offers a wide range of retail, corporate and MSME products through more than 150 offices in 25 cities and rural settlements of Kazakhstan. The bank is currently rated "BB/stable" by Standard & Poor's and "Ba1/ positive" by Moody's.
EBRD Finance Summary
USD 20,000,000.00
A senior loan of up to US$ 20 million in KZT equivalent.
Total Project Cost
USD 20,000,000.00
US$ 20 million in KZT equivalent.
Additionality
Financing structure:
(i) the EBRD offers local currency financing on terms not readily available in the market.
(ii) the EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.
Innovative financing structures and/or instruments:
The Project will benefit from the FLRC and the RBC, which are tailor-made and innovative instrument in the Central Asian market. FLRC and PBC are intended to support BCC to offer lower or more flexible collateral requirements.
Standard setting: helping projects and clients achieve higher standards:
Through a combination of elements (financing; FLRC; RBC; and TC), the YiB CA Programme helps clients raise their inclusive financing standards by generating a better awareness and understanding of
