Social housing construction funding

Loan purpose       

Funding of social housing construction projects.

Target borrowers 

Construction companies-residents of the Kyrgyz Republic with a stable financial position, sufficient collateral security, operating in the territory of the Kyrgyz Republic with an experience in the construction of multi-apartment residential buildings.

Economy-class housing must meet the criteria for housing affordability approved in the Program of the Government of the Kyrgyz Republic "Affordable Housing 2015-2020" (approved by the Decree No. 560 of the Government of the Kyrgyz Republic dated August 5, 2015).

The product does not apply to the construction of individual private houses.

Purpose of a loan

• Purchase, renewal and modernization of fixed assets (special machinery and equipment) and other long-term investments through the RKDF funds, including leasing;
• construction, including current assets directly involved in the production process.

Currency

US dollars

Loan amount

up to 5 million US dollars

Loan terms

Up to 5 years old, including:

а) purchase of equipment - up to 5 years. It is possible to have a deferral for a loan principal repayment up to 12 months

б) funding of current assets - up to 2 years. It is possible to have an exemption period for a loan principal repayment up to 9 months

Interest rate*

• Purchase, renewal and modernization of equipment and fixed assets: - 4% per annum;
• construction and installation work, purchase of construction materials, other types of work and services - the rate is determined by the formula = cost of resources attracted by the RKDF + 4% per annum;
• refinancing of loans provided by Commercial Banks - 10% per annum (no more than 30% of the RKDF loan amount).

Borrower own contribution

The borrower must provide own contribution in the amount of at least 20% of the total project cost.

Own contribution can be expressed in monetary resources or assets involved in the project implementation.

The borrower own contribution and requirements for collateral security are considered in accordance with the internal regulations of the RKDF and the RKDF Partner Banks.

Collateral security

According to the RKDF requirements, the collateral security must cover the loan amount in accordance with the internal regulations of the RKDF and the RKDF Partner Banks. The following can be provided as collateral security:

• Highly liquid assets (deposits, cash, government securities of the Russian Federation and the Kyrgyz Republic, corporate securities with a rating that meets the RKDF requirements);
• Estate property;
• Equipment, vehicles;

Some types of collateral are subject to insurance in accordance with the RKDF/Partner Banks requirements. The RKDF must be listed as the Beneficiary in insurance policies to receive insurance compensation.

Loan and interest repayment by Borrower

• Monthly or quarterly annuity payments.
• Monthly or quarterly payments, including repayment of the loan principal in equal installments.
• Repayment of the loan principal in regular installments, but at least once every three months (every 3 months, 6 months).
• Interest repayment monthly or quarterly.

Early loan repayment

Borrowers are entitled to a full or partial loan early repayment without any penalties

Sanctions and other requirements 

If the Borrower violates the target purpose, conditions and criteria of target-oriented funding purpose, the interest rate of RKDF increases up to 20% per annum

The RKDF has the right to cancel the loan and demand its early repayment.

Loan monitoring

The RKDF has the right to monitor the fulfillment of obligations by the Borrower. A Borrower is responsible for the preliminary estimate examination and monitoring of the construction progress.