Key Loan Product

Creation, acquisition, renewal and modernization of fixed-capital assets and other long-term investments, as well as the acquisition of intangible assets directly involved in the production process.

AMOUNT

Up to 25 million US dollars

BORROWERS

Commercial companies of various organizational and legal forms:

  • residents of the Kyrgyz Republic,
  • carry out cost-effective activities in the territory of the Kyrgyz Republic,
  • with a stable financial position.

PURPOSE OF LOAN

Creation, acquisition, renewal and modernization of fixed-capital assets and other long-term investments, as well as the acquisition of intangible assets directly involved in the production process.

The RKDF loan proceeds are not available for operating assets funding.

TARGET SEGMENT

  • Agriculture,
  • Processing of agricultural products produced in the Kyrgyz Republic, including food production,
  • Beverage production based on the processing of agricultural products produced in the Kyrgyz Republic,
  • Manufacture of textiles, clothing, footwear,
  • Manufacture of leather and related products,
  • Production of chemicals and chemical products, excluding the production of raw materials,
  • Manufacturing of pharmaceuticals and medicines,
  • Manufacture of machines, devices and equipment,
  • Production of vehicles,
  • Cities and towns infrastructure development projects in the framework of Public-Private Partnerships (PPP):

                 -  Water collection, treatment and distribution,

                 -  Sewerage systems,

                 -  Collection, treatment and disposal of waste; recycling,

                 -  Environmental remediation and other waste collection and disposal services,

-           Generation of electricity from renewable sources.

TERMS

Up to 10 years in accordance with the terms established by the RKDF Credit Policy.

It is possible to have a deferral for a loan principal repayment up to 24 months.

BORROWER OWN CONTRIBUTION

Minimum 15% of the project cost.

INTEREST RATE

4% per annum;

Loan refinancing - 6% per annum.

TECHNICAL ASSISTANCE

At the project preparation and implementation stages, it is possible to provide technical assistance on a grant basis for the following purposes:

  • preparation of a feasibility study;
  • performance of various expertise;
  • market analysis and marketing investigation;
  • consultants hiring;
  • other purposes contributing to the successful project implementation.

 

Wherein, investment projects must contain one of the following components:

  • The multiplier effect for the region development, expressed in the expansion of the raw material base through the local supplies products processing;
  • Export oriented production;
  • The project must meet the international standards (ISO, HACCP, etc.).

 

The amount of technical assistance can be up to 100,000 US dollars. Meanwhile, the Applicant covers a part of the costs:

  • minimum 20% for the total amount of expenses up to 10,000 US dollars;
  • minimum 30% for the total amount of expenses from 10,001 to 100,000 US dollars.

ADDITIONAL SUPPORT

  • Provision of the RKDF Guarantee for the Borrower to receive funding for the operating assets from other financial institutions on the terms agreed between the RKDF, the Borrower and the financial institution.
  • An administrative support in terms of permits obtaining, engaging with public authorities. 

COLLATERAL SECURITY

  • Highly liquid assets (deposits, cash, government securities of the Russian Federation and the Kyrgyz Republic, corporate securities with a rating that meets the RKDF requirements);
  • Estate property;
  • Equipment, vehicles;
  • Bank guarantees or corporate guarantees with a rating that meets the RKDF requirements;
  • Inventory.

Collateral calculation does not include the cost of inventory.

Some types of collateral are subject to insurance in accordance with the RKDF requirements. The RKDF must be listed as the Beneficiary in insurance policies to receive insurance compensation.

REPAYMENT

  • Monthly or quarterly annuity payments.
  • Monthly or quarterly payments, including repayment of the loan principal in equal installments.
  • Considering the business seasonality, repayment of the loan principal is possible in unequal installments, but at least once every four months. Interest repayment – monthly or quarterly.