Bailyk Finance provides affordable financial solutions to around 43,000 small businesses and households, predominantly in rural areas of Kyrgyzstan. For the coming three years, the expansion of green loans is one of the institution’s strategic pillars. Examples are loans for renewable energy sources, for the installation of solar powered fridges, heaters and dryers and loans for energy efficiency improvements of residential buildings, for example insulation.
Senior Investment Manager Altynai Valikhanova: “This green loan offering enables Bailyk Finance to stand out as a facilitator of green solutions in the microfinance sector of Kyrgyzstan."
Bailyk Finance has been working closely together with the International Finance Cooperation (IFC), a member of the World Bank Group, to develop and enhance its green loan offering. This includes training employees on the latest trends in green financing and assisting Bailyk’s existing and potential clients develop a construction and energy savings plan. So far, Bailyk’s clients have been able to save a total of USD 6 million in heating costs, resulting in 260,000 tonnes of avoided CO2 emissions.
Chinara Moldazhanova, General Director of Bailyk Finance: “There is an urgent need to improve housing conditions in the rural areas of Kyrgyzstan and affordable financing and technical support are key in making this happen. We strongly believe that our cooperation with IFC, for the technical support, and the Triodos funds, for the financial support, will have a synergy effect.”
For both Triodos funds, this investment marks the first in Kyrgyzstan and the first green credit line to a microcredit institution. Altynai Valikhanova: “This loan fits the funds’ strategy to establish an exposure to green loans with financial institutions in emerging economies. These are complementary and a good diversifier to the senior loans that the funds provide to utility scale renewable energy projects.”
Learn more about our investment activities in energy and climate.