Horticulture cluster – funding through the RKDF partner MFO

Purpose:

Growth in horticulture production and increase of the export potential of the Kyrgyz Republic in this area

Target borrowers:

Small businesses of various organizational and legal forms, residents of the Kyrgyz Republic with an experience in any of the following areas:

- processing of land used for horticulture production and perennial plantations of crop production (including machine-tractor stations);

- seed growing and cultivation of fruit nurseries;

- growing fruit and vegetable products;

- production of organic and mineral fertilizers;

- transportation, storage, distribution or sale of horticulture;

- horticulture processing;

- production of succulent feed.

Target-oriented loan disbursement:

Investment objectives:

• Purchase of equipment, machinery and units for the implementation of projects of technical re-equipment, modernization and expansion of existing production or creation of a new production, including indirect costs under the relevant contracts (costs of paying customs duties, taxes and fees; costs of engineering, installation supervision, construction, installation and commissioning; costs of spare parts; costs of personnel training, involvement of specialized independent experts, etc.);
• Execution of construction and installation work related to the construction, reconstruction or technical re-equipment of facilities (including production facilities, engineering and transport infrastructure, greenhouses, trellis systems and irrigation facilities);

Funding of expenses for the acquisition of real estate objects (land plots, buildings and structures for industrial and/or agricultural purposes).

Current assets funding:

• Purchase of raw materials, seeds, POL and fertilizers;
• Purchase of spare parts for production equipment, agricultural machinery and transport;
• Purchase of materials (including containers for transportation);
• Payment of logistics costs.

Borrower own contribution:

For investment loans - at least 15% of the project cost.

Funding currency:

Kyrgyz som

Funding amount:

up to 1 million Kyrgyz soms

Loan term

· Investment purpose – up to 5 years;

· Current assets funding - up to 2 years.

Exemption period:

· Investment loan - up to 12 months;

· Current assets funding - up to 3 months.

Interest rate for the end borrower:

Kyrgyz som - 14% per annum

Collateral security requirements for the end borrower:

Requirements in accordance with the regulations of MFO

Collateral security requirements for MFO:

In accordance with the RKDF Regulation “On targeted funding of microfinance organizations by the Russian-Kyrgyz Development Fund”.

Application of the norms of "Microfinance through microfinance organizations of the Kyrgyz Republic" Program:

In all aspects not directly regulated by this Product, the norms of the RKDF Program "Microfinance through microfinance organizations of the Kyrgyz Republic" are subject to application.