- IFC investment of up to $10 million in country's first green bond issued by Eshkata Bank
- Proceeds earmarked for micro, small and medium businesses to increase climate-smart projects
- Will support country's transition to a resilient, low-carbon economy
Dushanbe, Tajikistan, February 15, 2024—IFC has announced a subscription of up to $10 million in a landmark local currency green bond issued by Tajikistan's Eskhata Bank—the first in the country—to boost access to climate finance for smaller businesses amid a challenging macro-economic environment.
Eshkata Bank, a longstanding IFC partner, is one of the country's leading private banks, with a focus on serving micro, small and medium enterprises (MSMEs) and retail clients. The proceeds of the green bond will enable it to support eligible MSMEs in undertaking climate-smart initiatives, supporting economic activity at a challenging time for the country.
The partnership with Eskhata Bank is also part of IFC's Base of the Pyramid Platform, which benefits from concessional support from the International Development Association's Private Sector Window in the form of a guarantee and local currency funding that is not readily available in the market.
"IFC's investment in Eskhata Bank's green bond is a testament to our dedication to supporting MSMEs in driving environmental sustainability," said Akmaljon Saifidinov, Eskhata Bank's CEO. "By channeling funds towards climate-smart projects, we are helping to build a more resilient and sustainable economy in Tajikistan."
Tajikistan recently approved and implemented its Green Economy Development Strategy for 2023–2037, which sets a clear vision and direction for its transition to a low-carbon and resilient economy. IFC is supporting this process through its climate finance program in Central Asia, which aims to increase the flow of green finance into the country.
"This first green bond issuance in Tajikistan by our long-standing client, Bank Eskhata, is a remarkable achievement that demonstrates the bank's commitment to sustainable development. We are proud to be part of this landmark transaction, which will help pave the way for more transformative green bond issuances in Tajikistan and the region," said Zafar Khashimov, IFC Regional Manager.
Green bonds raise funds for projects with positive environmental benefits, such as renewable energy, energy efficiency, waste management, or green building. These projects not only reduce greenhouse gas emissions but can help create jobs and promote technological innovation.
IFC's relationship with Eskhata Bank dates back to 2005. Since then, IFC has extended a series of loans and trade finance lines totaling $34 million and provided a wide range of advisory services.
For more information about Eskhata Bank, please visit: http://www.eskhata.com.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's vision to create a world free of poverty on a livable planet, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
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