IFC Invests in Tajikistan’s First Green Bond to Support Climate-Smart Projects, Build Resilience
Business
Eshkata Bank, a longstanding IFC partner, is one of the country's major private banks, with a focus on serving micro, small and medium enterprises (MSMEs) and retail clients. The proceeds of the green bond will enable it to support eligible MSMEs in undertaking climate-smart initiatives, supporting economic activity at a challenging time for the country.
The partnership with Eskhata Bank is also part of IFC's Base of the Pyramid Platform, which benefits from concessional support from the International Development Association's Private Sector Window in the form of a guarantee and local currency funding that is not readily available in the market.
Tajikistan recently approved and implemented its Green Economy Development Strategy for 2023–2037, which sets a clear vision and direction for its transition to a low-carbon and resilient economy. IFC is supporting this process through its climate finance program in Central Asia, which aims to increase the flow of green finance into the country.
Green bonds raise funds for projects with positive environmental benefits, such as renewable energy, energy efficiency, waste management, or green building. These projects not only reduce greenhouse gas emissions but can help create jobs and promote technological innovation.
IFC's relationship with Eskhata Bank dates back to 2005. Since then, IFC has extended a series of loans and trade finance lines totaling $34 million and provided a wide range of advisory services.