To increase access to green and social financing in Kyrgyzstan, IFC, a member of the World Bank Group, has announced a subscription of up to $15 million in the country’s first-ever sustainability bonds, issued in local currency by the Kyrgyz Investment and Credit Bank (KICB).
This landmark issuance will enable KICB to offer more local currency home microloans to low-income families, enhance financing to small and women-led businesses, as well as to support green projects, strengthening the economy and sustainable development.
“IFC’s investment in KICB’s sustainability bonds reflects our commitment to empowering small businesses and women entrepreneurs, and to promoting environmental and social sustainability,” said Mr. Arif Ali, CEO of KICB. “By channeling funds toward green and inclusive projects, we are contributing to a more resilient and equitable future for the Kyrgyz Republic.”
Access to finance remains a key challenge in the country. According to the World Bank’s Enterprise Survey, only 14 percent of small businesses and 32 percent of medium-sized businesses in the Kyrgyz Republic have access to a bank loan or line of credit. Credit to the private sector accounts for around 22 percent of GDP, and the financing gap for small enterprises is estimated at $3 billion, equivalent to approximately 21 percent of GDP.
“The landmark issuance of sustainability bonds by our long-standing client KICB marks a significant step forward for sustainable finance in the Kyrgyz Republic,” said Hugh Riddell, World Bank Group Country Manager for the Kyrgyz Republic. “It sets a strong precedent for advancing innovative financing solutions that support inclusive and resilient growth, both in the Kyrgyz Republic and across the region.”
Sustainability bonds are financial instruments whose proceeds are exclusively used to finance or refinance a combination of green and social projects, such as energy efficiency, climate finance, renewable energy, sustainable agriculture, waste management, entrepreneurship, and affordable housing. These projects promote gender equality and social inclusion while contributing to job creation and stronger local economies.
