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Tajikistan: Proparco is supporting the development of the microfinance bank Arvand
Project
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Signature date
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Location
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Tajikistan
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Financing tool
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Financing amount (Euro)
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4219765
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Financing details
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USD 5m loan
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Customer
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CJSC Bank Arvand
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Type of customer
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Microfinance
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Country of headquarters
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Tajikistan
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Project number
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PTJ1002
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Environmental and social ranking
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C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco is supporting Arvand via a USD 5m loan. It will allow the bank to continue its activity of financing microentrepreneurs while developing its SME portfolio.
Client presentation
The microfinance bank CJSC BANK ARVAND (Arvand) is one of the leaders on the microfinance market in Tajikistan. Having obtained its banking license in 2019, Arvand’s objective is to continue to serve microentrepreneurs, especially in the agriculture sector, while developing its SME portfolio. In a context of economic volatility and with the health crisis, Arvand is showing resilience with a portfolio of good quality and good fundamentals. This is in particular due to its rigorous credit risk management and its experienced management team which knows the Tajik market.
Project description
The project involves the allocation of a senior credit line to Arvand for an amount equivalent to USD 5m to support the development of its loan portfolio.
Project impact
This project will support the development of a major microfinance player in Central Asia. It should provide access to some 5,000 micro-credits and support 2,400 jobs and 130 SMEs. The project will thereby contribute to SDGs 8 (Decent work and economic growth) and 10 (Reduced inequalities).