As the European Union is set to boost the business climate in Kazakhstan and central Asia through the Program Central Asia Invest – Policy, MFO KMF LLC (KMF) a leading Kazakh financial institution has proved itself to be ahead of the curve, having mandated Emerging Markets Global Advisory Limited (EMGA) to secure new cross-border funding. EMGA has gone on to successfully structure and arrange an initial USD 15m round of senior debt financing for KMF from one of Europe’s leading development banks, Austria’s OeEB.
Commenting on the transaction, Shalkar Zhussupov Сhairman of the Board of KMF said, “EMGA has successfully secured foreign financing from a leading financial institution allowing us to deliver on our stated mission; encourage welfare growth of micro, small and agribusiness representatives by providing access to quality microfinance services.”
EMGA’s Senior Advisor and Transaction co-head Paul Dixon said, “It was a pleasure to communicate KMF’s vision about supporting business within Kazakhstan and successfully complete this funding solution with OeEB.” EMGA’s Managing Director Jeremy Dobson added “Key to this transaction has been KMF’s strong management and solid financial position; both were major factors that enabled Paul and EMGA’s Transaction team to complete this financing in tandem with the deep institutional framework and financial capacity that OeEB represent.”
“Financial inclusion is one of our strategic pillars”, stated Sabine Gaber, member of OeEB board, “Therefore, we are happy to support KMF activities in the field of microcredits, because this is the most direct way of reaching the poorest in society.”
Emerging Markets Global Advisory Limited (EMGA), based in London and New York helps financial institutions and corporates seeking new debt or equity capital. EMGA’s multi-national team combine the decades of experience necessary to complete transactions within most emerging countries, including Kazakhstan which remains a key market. EMGA continues to expand its geographic reach, solidifying its place as a preeminent emerging market focused, niche investment bank.
KMF is a leader in microfinance market in Central Asian region. KMF supports micro, small and agribusiness and has also proved itself with its strong social performance. In January 2019 KMF’s social rating report from an international rating agency MFR (earlier – Microfinanza Rating) was kmade public. KMF received “AA-” grade, given for excellent social performance management and client protection systems, as well as high likelihood of achieving the social mission
OeEB was founded in March 2008 as the development bank of the Republic of Austria. With a public mandate OeEB works for better living conditions in developing countries. OeEB is present in markets in which companies often have no or limited access to urgently needed capital, both credit and equity. Investments in these projects create jobs; these projects increase tax revenues and bring foreign currency into the country. OeEB is a wholly owned subsidiary of Oesterreichische Kontrollbank (OeKB).