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Bailyk Finance in Kyrgyzstan receives USD 2.5 Million debt facility
Bailyk Finance provides affordable financial solutions to around 40,000 small businesses and households, predominantly in rural areas. For the coming years, the expansion of green loans is one of its strategic pillars. Examples are loans for energy efficiency improvements of residential buildings, think of insulation, and loans for solar powered fridges, heaters and dryers.
Senior Investment Manager Altynai Valikhanova: “This green loan offering makes Bailyk Finance stand out in the microfinance sector in Kyrgyzstan. Clients can save on payments for energy consumption, and, at the same time, it also contributes to environmental care.”
Bailyk Finance has been working closely together with the International Finance Cooperation (IFC), a member of the World Bank Group, to develop and review its green loan offering, including training employees on the latest trends in green finance and assisting them in helping (potential) clients make a construction and energy savings plan. So far, clients have been able to save a total of USD 5.6 million in heating costs, resulting in 260,000 tonnes of avoided CO2 emissions.
This funding marks for both Triodos funds the first one in Kyrgyzstan and also the first loan to a microfinance institution. Altynai Valikhanova: “This very well fits our strategy to establish an exposure in green loans with financial institutions in developing and emerging economies, and which is complementary to the loans we provide to utility-scale renewable energy projects.’
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