Trout farming cluster development through the RKDF Commercial partner banks

In the framework of "Lending to small and medium-sized businesses through Commercial Banks" Program

Purpose:

Growth in fish production and export development within a single value chain

Target borrowers:

Small and medium-sized businesses – Enterprises and economic entities in the field of aquaculture production

(cultivation/processing/sale of trout or production of feed).

· Fish farms engaged in the fish cultivation and/or breeding.

· Fish nursery.

· Fish processors.

·  Feed producers and other processing enterprises participating in the cluster.

Target-oriented loan disbursement:

Funds can by allocated:

Investment objectives:

· Purchase of machinery and equipment.

· Construction and installation works, reconstruction and purchase of industrial facilities;

Current assets funding:

· Purchase of caviar/fry;

· Feed purchase;

· Purchase of medicines, vitamins for aquaculture, etc.;

· Purchase of materials and other services as part of an investment project.

Loan rescheduling:

In exceptional cases, a loan may include a rescheduling component. The rescheduling component, including refinancing loans from other banks, must not exceed 30% of the loan amount, and can be provided subject to the following conditions being met:

1. the rescheduled loan was used for investment purposes and is associated with the ongoing project;

2. the target-oriented disbursement of the rescheduled loan is confirmed by the relevant documents for the transaction (account statements, contracts, invoices, customs declaration, waybill, certificate of completion, certificate of acceptance);

3. rescheduled loan availability period is at least 6 months at the time of the application review;

4. no overdue payments on the rescheduled loan principal and interest;

5. the absence of revolving debt rescheduling due to a worsening financial situation or debt servicing (loan principal and interest repayment), unless otherwise decided by the RKDF Board.

At the same time, the total amount of all loans with refunding should not exceed 30% of the total funding limit within this program.

Refunding of loans provided by financial institutions other than banks is prohibited.

Borrower own contribution:

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

Funding currency:

· Kyrgyz som;

· U.S. dollars.

Funding amount:

up to 1 million US dollars (equivalent in Kyrgyz soms)

Loan term

Investment purpose - up to 7 years

Current assets funding - up to 3 years

Exemption period for the end borrower

Investment loan:

· for hatcheries and fish farms - up to 36 months

· for processing enterprises -  up to 12 months

Current assets funding:

· for hatcheries and fish farms - up to 18 months

· for processing enterprises -  up to 12 months

Interest rate for the end borrower:

Kyrgyz som - 9% per annum.

US dollars - 5% per annum.

Collateral security requirements:

Requirements in accordance with the regulations of a Commercial Bank

Guarantee of OJSC "Guarantee Fund".

Collateral security for the Commercial Banks:

In accordance with the RKDF Regulation "On targeted funding of Commercial Banks by the Russian-Kyrgyz Development Fund".

Application of the norms of "Lending to small and medium-sized businesses through Commercial Banks” Program:

In all aspects not directly regulated by this Product, the norms of the RKDF Program "Lending to small and medium-sized businesses through Commercial Banks" are subject to application.