To help expand access to finance for small and medium enterprises and women entrepreneurs, IFC — a member of the World Bank Group — is investing $15 million in a private bond issuance by Demir Kyrgyz International Bank (DemirBank), a leading commercial bank in the Kyrgyz Republic.
According to IFC, proceeds from the bond will provide much-needed financing to underserved small and medium enterprises, with at least 25 percent of the funds allocated to women-owned businesses, including those in rural areas. The initiative is expected to promote business growth, catalyze job creation, and contribute to economic diversification. Over the next five years, it is projected to help generate between 1,200 and 2,000 direct and indirect jobs.
Micro, Small, and Medium Enterprises (MSMEs) in the Kyrgyz Republic face a significant financing gap, estimated at 18 percent of GDP. According to the World Bank Enterprise Survey (2023), less than 22 percent of formal MSMEs have access to bank financing, while 38 percent report experiencing full or partial financial constraints.
“IFC’s investment underscores our commitment to supporting economic diversification, financial inclusion, and gender empowerment in the Kyrgyz Republic,” said L. Sevki Sarilar, General Manager of DemirBank. “By providing long-term local currency financing, we aim to empower smaller businesses, particularly women-owned businesses, to grow and thrive, fueling job creation and driving sustainable economic development.”
“This project strengthens IFC’s efforts to enhance economic resilience and expand access to finance in the Kyrgyz Republic,” said Alain Nounke, IFC’s Regional Industry Manager for Financial Institutions Group in Central Asia and Türkiye. “DKIB’s bond is expected to support the development of local capital markets, and IFC’s participation sends a strong signal to help attract additional investors to similar initiatives.”
IFC’s engagement with DemirBank is supported by the Local Currency Facility of the International Development Association’s Private Sector Window. The partnership is part of IFC’s broader strategy to support private businesses and drive economic growth in the Kyrgyz Republic.
