Regions – Growth Points Projects' Contest

Target borrowers

Commercial companies of various organizational and legal forms (residents of the Kyrgyz Republic) with a stable financial position that carry out cost-effective activities in the territory of the Kyrgyz Republic.

 

New projects (greenfield or start-up) can be considered, provided that there is an existing business (not related to the investment project).

Amount

From 300 thousand US dollars to 5 million US dollars.

Terms

Investment loan – up to 10 years.

Current assets funding - up to 3 years. 

Exemption period

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

Intensive gardening – up to 36 months. 

Borrower own contribution

Minimum 20% of project cost.

Up to 10% of the project cost can be presented in the form of assets involved in the project implementation.

The Applicant own contribution is made in full before the RKDF funds availability or before each of the tranches availability in the amount of at least 20% of the tranche.

Interest rate

The interest rate for investment purposes is set in the following amounts:

·      4% per annum in US dollars;

·      8% per annum in KGS.

Loan in the national currency can be used exclusively for the purchase of goods and services produced in the territory of the Kyrgyz Republic. 

Collateral security

In accordance with the requirements of the RKDF regulatory documents.

Qualifications of an applicant

·      No negative credit history;

·      No negative business history and reputation.

Technical assistance

At the stages of preparation and implementation of the project, 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.

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. 

Incentive mechanism

½ part of the paid interest on the loan in US dollars and ¼ part of the paid interest on the loan in Kyrgyz Soms is returned to the Borrower provided the following conditions are met:

·      The reversion of the interest charges becomes vested upon 12 months from the date of the termination of the exemption period (vacation) for the loan principal, but not earlier than the date of the continuous production start-up (after the end of the first production cycle).

·      The reversion of the interest charges does not apply to the exemption period.

·      The amount of interest returned should be used for purposes related to the ongoing project.

·      There was no restructuration/prolongation of the RKDF loan due to the company financial position worsening.

·      Absence of delays in loan principal and interest repayment for more than 3 working days per one payment and more than 15 working days in total to the RKDF and to the current liabilities with respect to other CFI.

 

The requirement for no delay applies to all obligations of the Borrower and related companies to the RKDF. 

Basic conditions of the projects selection

The decision to finance the Project is made by the Board on a competitive basis, subject to compliance with the RKDF requirements.

 

The deadline for the application submission is December 31, 2020. 

 

Distribution of projects by regions

Region name

Project objective

Number of projects

Batken region

a) Horticulture processing enterprise; 

b) Trade and logistics center for storage and processing of agro - products;

c) Intensive gardening of at least 20 hectares. 

2

Jalal-Abad region

a) Horticulture processing enterprise;

b) Trade and logistics center for storage and processing of agro - products;

c) Intensive gardening of at least 20 hectares;

d) Fish farming. 

3

Issyk-Kul region

a) Horticulture processing enterprise;

b) Dairy and meat products processing enterprises;

c) Trade and logistics center for storage and processing of agro - products;

d) Intensive gardening of at least 20 hectares.

 

2

Naryn region

a) Dairy, meant and wool processing enterprises;

b) Slaughterhouses in accordance with EEU standards;

c) Trade and logistics center for storage and processing of agro - products;

d) Fish farming. 

2

Osh region

a) Cotton processing enterprise;

b) Horticulture processing enterprise;

c) Trade and logistics center for storage and processing of agro - products;

d) Intensive gardening of at least 20 hectares. 

3

Talas region

a) Bean processing enterprise;

b) Horticulture processing enterprise;

c) Trade and logistics center for storage and processing of agro - products;

d) Intensive gardening of at least 20 hectares. 

2

Chui region

(Panfilov, Moscow, Jaiyl, Chui, Issyk-Ata and Kemin districts)

a) Textile production factory;

b) Dairy, meant and wool processing enterprises;

c) Horticulture processing enterprise;

d) Intensive gardening of at least 20 hectares.

2