Kazakhstan to get huge IFC loan for its microfinance
By Ali Mustafayev
International Finance Corporation (IFC), a member of the World Bank Group, is providing a senior syndicated loan of $82 million equivalent in Kazakh tenge to “Microfinance organization “KMF” LLC, a leading Kazakh microfinance institution, to boost lending to micro and small enterprises, including women entrepreneurs and customers in rural areas of Kazakhstan, the press service of IFC said in a message.
The investment comprises a senior loan of $10 million for IFC’s own account and a Hedged A-Loan Participation (HALP) of up to $72 million for the account of leading international investors, and is the largest ever deal in the microfinance sector of Kazakhstan.
“IFC uses the HALP, a syndication product allowing IFC to sell US dollar participation in a local currency-denominated loan, to provide KMF with much needed local currency financing to support its growth while protecting the investors from currency risk.
Photo courtesy of Mandy.