Today, 23rd of March, the Prime Minister of the Kyrgyz Republic Joomart Otorbaev met with representatives and investors of Kompanion Financial Group Microfinance CJSC. The Prime Minister mentioned at the opening of a meeting that in view of economic situation in the region attraction of direct Dutch investments to financial sector of the Kyrgyz Republic is very important to the country’s economy. “This will be a good example in terms of investment into economy of Kyrgyzstan,” Joomart Otorbaev underlined.
Head of the Government reminded that overall loan portfolio of financial and microfinance sector totals 20% to GDP level. “33% of loan portfolio belongs to microfinance institutes, they play sound role in the country’s economy in whole. For the period from 2010 to January 2014, volume of microloans of microfinance organizations increased almost in 2.3 times – from nine to twenty one billion Kyrgyz soms. At this time, there are almost 500 thousand borrowers in microfinance sector of Kyrgyzstan. Each second family is borrowers in the republic. Microfinance sector facilitates to the creation of new jobs, increase of the well-being of thousands of families and establishes new opportunities for social and economic growth of rural regions and small towns,” – he said.
Prime Minister also noted interest of the country in Kompanion Financial Group Microfinance CJSC to increase its resources, number of products, offered to Kyrgyzstan’s population. “In our country, small and medium business is well developed, and microfinance organizations strongly support them. If our microfinance institutes will receive more investments, then economy of the country will prosper,” Joomart Otorbaev said and added that the goal of the Government is to support entrepreneurs of small and medium business in obtaining access to world markets, increasing of agribusiness to higher level of quality.
The Vice President of Financial Services of Mercy Corps, the Chairperson of Kompanion Board of Directors Stephen Mitchell, in his turn, noted interest in cooperation with Kyrgyzstan. “We try to make contribution to development of economic systems in Kyrgyzstan and to increase access to new markets for local people. There are a lot of things to do in this direction, particularly trough rendering support to the microfinance sector,” Stephen Mitchell said.
Note that Dutch investors were introduced in the shareholders’ composition of Kompanion Financial Group Microfinance CJSC. The charter capital of the company was increased from KGS 650.4 mln up to KGS 1 bln. 616 ths. New shareholders will be represented by an international financial credit institution and the funds of the Netherlands and Luxembourg with social and innovative focus. Kompanion’s founder — Mercy Corps, an international non-governmental organization for economic development and aid — remains the main shareholder holding 65% of shares. The share of new shareholders will be 35%.
The Dutch Development Bank (FMO) will hold 17.5 % of Kompanion’s shares. Its core business includes provision of loans, guarantees and capital to private sector enterprises in developing countries. The Dutch Development Bank received the international long-term credit rating ААА.
The government represented by the Dutch Ministry of Finance holds 51% of shares in the bank’s capital structure. FMO’s total amount of investment in Kompanion will be KGS 244,136,500.
Two investment funds from Triodos collectively hold 17.5% of shares:
- Triodos Fair Share Fund (the Netherlands) is the first investment fund that was awarded an official status of a social ethical investment institution. The fund’s total amount of investment will be KGS 122,068,250.
- Triodos Sicav II — Triodos Microfinance Fund (Luxembourg) deals with investments in financial services for low-income people in developing countries. The investment amount of the fund whose assets amount to more than EUR 200 mln. will be KGS 122,068,250 too.
