IFC mobilized USD 16.5 million, including USD 5 million from its own account, for IMON International, an MFI in Tajikistan. The funds will be used to boost lending to micro, small, and medium enterprises in the country’s remote and rural areas. IFC's financing will be complimented by investments mobilized by IFC from PROPARCO, a subsidiary of Agence Française de Développement (AFD), and the OPEC Fund for International Development (OFID), which is making its first private sector investment in the country. In order to protect IMON International from currency risk, the IFC and Proparco investments will be hedged by converting U.S. dollar-denominated borrowings into Tajik Somoni, while OFID’s loan will be provided in U.S. dollars.
“Our long-standing partnership with IFC was critical for attracting additional financing as it proved our sustainability and viability. With this financing package, we will be able to increase our credit and other product offerings for farmers, small businesses, and female entrepreneurs in Tajikistan,” said Sanavbar Sharipova, IMON International’s CEO. “IFC promotes development by mobilizing financing for the private sector, which is what differentiates us from commercial financiers. This parallel financing will support IMON's overall growth strategy to diversify and increase the volume of its funding, better manage foreign currency risks, and meet the local currency funding needs of its borrowers," said Edward Strawderman, Regional Head of Industry, IFC EMENA Financial Institutions Group.