According to a EBRD statement, the financial institution is acquiring a stake of 25% + 1 share in Agroinvestbank, the second largest commercial bank in Tajikistan, for up to $12m.
Agroinvestbank is one of the main providers of finance to micro, small and medium-sized enterprises and the agricultural sector in the country. Through its rural network it can reach out areas where access to finance remains difficult for private entrepreneurs.
The EBRD’s investment will strengthen the capital base of Agroinvestbank and will also enable the bank to increase loans to local enterprises.
The investment is complemented by $1.5 million in grant funds from the Bank’ Early Transition Countries Fund for institution building and the strengthening of corporate governance.
Agroinvestbank have been supported by the EBRD since 2005 through different facilities such as the Tajik Micro and Small Enterprise Framework, the Trade Facilitation Programme and the Tajik Agricultural Finance Framework.