CMS has advised its longstanding client the European Bank for Reconstruction and Development (EBRD) on a USD 15 million financing package to Bank Arvand of Tajikistan, the largest financing offered to a financial intermediary in Tajikistan to date. The package consists of three similar-sized loans of up to USD 5 million (€4.6 million) each.
The first loan comes under the Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II) and will encourage residential and commercial borrowers to invest in green and innovative solutions that promote the efficient use of water and the sustainable management of land. GEFF Tajikistan II was launched by the EBRD and the Green Climate Fund (GCF) and is supported by donor funding from South Korea, Austria and the GCF.
The second loan comes under the EBRD’s Youth in Business programme in Central Asia targeting micro, small and medium-sized enterprises (MSMEs) led or owned by young individuals under the age of 35. Eligible borrowers will also benefit from grants and concessional co-financing designed to stimulate inclusive lending and youth entrepreneurship.
The third recently signed loan came under the EBRD’s Women in Business (WiB) programme for Central Asia, which is supported by the Women Entrepreneurs Finance Initiative.
CMS Banking & Finance partner Rafal Zakrzewski comments: “We are very proud to support EBRD on such important projects that facilitate investment in green technologies and increase entrepreneurship of women and youth. It is immensely satisfying that the legal work we do promotes innovative solutions and sustainability in the development of local communities in central Asia.”
CMS Poland’s Banking and Finance team’s advice included preparing and negotiating the finance documentation under English law and coordinating the project as transaction counsel.
The CMS Banking and Finance team was led by senior associate Krzysztof Schulz and overseen by partner Rafał Zakrzewski.
