Bailyk Finance in Kyrgyzstan receives USD 2.5 Million debt facility

 Triodos Renewable Energy Emerging Markets Fund and Triodos Groenfonds have provided a USD 2.5 million loan to microfinance institution Bailyk Finance in Kyrgyzstan for the expansion of its green loan offering.

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.

Chinara Moldazhanova, General Director of Bailyk Finance: “There is an urgent need to improve housing conditions in the rural areas of Kyrgyzstan and affordable financing and technical support are key in making this happen. We strongly believe that our cooperation with IFC for the technical support and the Triodos funds for the financial support will have a synergy effect. providing technical support in the form of training materials, the Triodos and Triodos Group providing a credit line to our Company,” said Chinara Moldazhanova, General Director of Bailyk Finance.

 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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