 Background |
Kyrgyz Investment and Credit Bank (KICB) was
established in January 2001 with an initial share
capital of USD 7 million. In addition to its share
capital, KICB has access to a number of credit
lines. The founding shareholders are Kreditanstalt
fur Wiederaufbau (KfW) is a co-founder of, but
not a shareholder in, KICB. AKFED has agreed to
take management responsibility as lead manager
and principal shareholder.
Table
KICB has an international management team, which
is financed by technical co-operation funds provided
through EBRD. The CEO is Mr. Kwang-Young Choi, a
Korean national with extensive bank management experience.
The Chief Credit Officer, Jim Egan, and the Chief
Operations Officer, Kieran O'Malley, have been retained
under a technical assistance contract between EBRD
and ICC Bank plc, Ireland. In addition, a team of
Kyrgyz professional staff is recruited to assist
in the establishment and development of KICB.
Banking supervision and regulation is the responsibility
of the National Bank of the Kyrgyz Republic (NBKR).
KICB is licensed by the NBKR and is the subject
to full regulation. KICB is comply fully with
all the regulatory requirements of NBKR, and in
some cases, it will pursue more conservative criteria.
KICB is in a position to provide limited amounts
of technical assistance to approved customers.
This assistance can be used to part finance the
cost of developing the customers' projects.
KICB plans to contribute significantly to the
economic development of The Kyrgyz Republic through
the provision of innovative banking products and
services, particularly in the area of medium and
long-term finance. KICB offers short, medium and
long term loans and a range of trade finance products
to its corporate customers. It also accepts deposits
from enterprises.
| Working
with KICB |
KICB provides loan finance for Kyrgyz enterprises
to finance fixed asset investment and working
capital requirements. These facilities are provided
either on the basis of fixed or floating interest
rates.
Interest rates for fixed interest rate facilities
are set at the prevailing rate on the day of drawdown
of the loan. They will remain fixed at that rate
for the duration of the loan as outlined in the
loan agreement.
Floating interest rates are subject to change
in line with market conditions. This means that
the interest rate will be adjusted periodically,
in accordance with the loan agreement.
We recommend that you contact one of our credit
specialists at an early stage. You may be asked
to submit information on your proposal in advance
of the meeting. This will ensure that KICB is
able to get a clear picture of your requirements
and give you a speedy decision on your loan application.
Should KICB be unable to finance your project,
we will explain why and will be happy to look
at any future proposals you may have.
| KICB's
code of practice |
All information, both business and private, provided
to KICB will be kept completely confidential.
KICB will not disclose any information concerning
our borrowers; their business and their dealings
with KICB without the prior permission of the
borrower. This includes disclosing details for
marketing or other purposes to any third party
without the prior consent of the borrower,
All staff in KICB will treat you, as a person
and a customer, with courtesy, consideration and
in the most helpful manner. KICB recognizes the
importance of listening carefully and understanding
your financial needs. This enables us tailor our
facilities to deliver the most appropriate product
for the financing needs of our customers.
KICB recognizes that, despite its best endeavors,
it is possible that some customers may not be
entirely satisfied with the quality of service
received. In this case, the customer should discuss
the matter with the relevant member of KICB's
international management team.
| Our appraisal
criteria |
The main appraisal criteria attached to all banking
facilities include the strength, experience and
quality of management; trading history and track
record; market position; future prospects; cash
flow generation and the adequacy of security. These
criteria will be taken into account in determining
and negotiating the interest rate applicable to
the loan.
| How interest
is charged |
Following disbursement, interest is calculated by
reference to the daily cleared balance on the loan
account. The frequency of interest charged is defined
for each particular loan and stated in the loan
agreement. Generally, interest is capitalized either
monthly or quarterly or, in the event of the loan
being repaid, up to the effective date of repayment.
Value is given for loan repayments when such value
has been received by KICB. Interest is calculated
on all loans and deposits on the basis of a 360
day year.
| Quality
service |
KICB offers highly competitive banking facilities
to Kyrgyz enterprises in almost all commercial sectors,
demonstrating commitment to and value for our customers.
KICB has adopted dedicated standards to underpin
our commitment to provide a superior level of service.
| Products
|
TRADE FINANCE PRODUCTS
The following products will be offered by KICB:
·Letters of Credit
·Documentary Collections
·General Discounting Facilities
·Bonds and Guarantees
Letters of Credit L/C
KICB will issue Letters of Credit to finance
imports and advise and negotiate Letters of Credit
covering exports. Letters of Credit are a form
of bank guarantee and an important part of international
trade. Many suppliers will insist on such payment
terms before releasing goods. In many cases, KICB
may issue letters of credit for the supply of
equipment to long-term borrowers. On maturity
of the Letter of Credit, the amount payable would
then be converted to a long-term loan.
A purchaser stipulates the documents required
thereby maintaining control over shipping dates,
transport arrangements, insurance cover and any
other special requirements. Payment is only made
on strict compliance with documentary requirements.
An exporter has the certainty of a bank undertaking
to pay against presentation of correct documentation.
Features
Available for: Finance of imports and exports
Currency: All major currencies (ultimate liability
of borrower in USD or KGS)
Term: Subject to terms of trade
Fees/charges: Import L/C - Opening and payment/acceptance
commission and confirmation fees, where applicable
Export L/C - Advising and collection fee
Payment: On maturity of L/C
Documentary Collections
KICB will provide a Documentary Collection service
for L/C transactions. Payment will be made or
received on presentation and acceptance by the
parties concerned of agreed documentation, thereby
facilitating both buyer and seller.
|
Features
Available for: Payment for imports and exports
Term: As per documents
Fees/charges: By negotiation
Payment: On due date as agreed by buyer and seller
General discounting facilities
KICB will discount bills of exchange drawn on
prime customers and bills that have been endorsed
by a reputable bank or other acceptable party.
KICB will also discount Letters of Credit and
other acceptable trade instruments.
Features
Available for: Cash flow enhancement
Currency: USD or KGS (based on exchange rate at
date of discount if in another currency)
Term: As per documents
Fees/charges: By negotiation
Payment: On maturity of documents
Bonds and Guarantees
KICB will provide a complete range of Bonds, Guarantees
and Standby Letters of Credit tailored to meet
the needs of our clients e.g. bid bonds, advance
payment bonds, performance bonds etc.
Features
Available for: Underwriting financial/performance
obligations
Currency: All major currencies
Term: Dependent on underlying transaction
Fees/charges: By negotiation
Payment: On demand
Other
In addition to Letters of Credit to finance imports,
KICB will also consider facilitating the issuing
and collecting of local domestic Letters of Credit
should there be a demand for such facilities.
LOAN PRODUCTS
1. USD denominated fixed interest loans
Available for: Fixed asset investment.
Currency: USD.
Loan type: Fixed interest USD loan.
Term: Up to 7 years. A moratorium (grace period)
on principal repayments can be negotiated.
Interest rate: Fixed from the date of disbursement
of the first tranche of the facility.
Repayment: Monthly repayments of interest only
shall be made during the principal moratorium
period. Thereafter, repayments of interest shall
be made monthly and repayments of principal shall
be made quarterly and calculated on an annuity
or straight-line basis.
Fees/Expenses: KICB's normal fee structure will
apply. Fees may be capitalized or deducted from
the initial disbursement.
Early Repayment: 3 months notice of early repayment
is required. Repayment outside of this notice
may be subject to an early repayment penalty.
2. USD denominated floating rate interest loans
Available for: Fixed asset investment.
Currency: USD.
Loan type: Floating interest USD loan.
Term: Up to 7 years. A moratorium (grace period)
on principal repayments can be negotiated.
Interest rate: A margin over the 1/3/6 month LIBOR
for USD. The rate shall be adjusted monthly/quarterly/half
yearly in accordance with movements in LIBOR.
The margin will depend on the size of the loan,
the loan period, the perceived risks associated
with the loan and the funding costs of KICB.
Repayment: Monthly repayments of interest only
shall be made during the principal moratorium
period. Thereafter, repayments of principal and
interest shall be made monthly. The amount of
each repayment must be sufficient to repay the
999 within the term approved.
Fees/Expenses: KICB's normal fee structure will
apply. Fees may be capitalized or deducted from
the initial disbursement.
Early Repayment: 2 months notice of early repayment
is required. Repayment outside of this notice
may be subject to an early repayment penalty.
3. USD denominated working capital loans
Available for: Hard core working capital requirements
Currency: USD.
Loan type: USD working capital loan.
Term: Normally up to 1 year. This may be renewed
for a further year at the discretion of KICB.
In the event of a renewal, a principal repayment
of at least 20% of the original principal amount
will be required.
Interest rate: A margin over the 1/3/6 month LIBOR
for USD. If the rate is floating, it shall be
adjusted monthly/quarterly/half yearly in accordance
with movements in LIBOR. The margin will depend
on the size of the loan, the loan period, the
perceived risks associated with the loan and the
funding costs of KICB.
Repayment: The principal shall be repaid by one
bullet repayment at the end of the term of the
loan. Monthly repayments of interest only shall
be made during the loan period.
Fees/Expenses: KICB's normal fee structure will
apply. Fees may be capitalized or deducted from
the initial disbursement.
Early Repayment: One month's notice of early repayment
is required. Repayment outside of this notice
may be subject to an early repayment penalty.
4. KGS denominated fixed interest loans
Available for: Fixed asset investment.
Currency: KGS.
Loan type: Fixed interest KGS loan.
Term: Up to 7 years. A moratorium (grace period)
on principal repayments can be negotiated.
Interest rate: Fixed from the date of disbursement
of the first tranche of the facility.
Repayment: Monthly repayments of interest only
shall be made during the principal moratorium
period. Thereafter, repayments of interest shall
be made monthly and repayments of principal shall
be made quarterly and calculated on an annuity
or straight- line basis.
Fees/Expenses: KICB's normal fee structure will
apply. Fees may be capitalized or deducted from
the initial disbursement.
Early Repayment: 2 months notice of early repayment
is required. Repayment outside of this notice
may be subject to an early repayment penalty.
5. KGS denominated floating rate interest loans
Available for: Fixed asset investment.
Currency: KGS.
Loan type: Floating interest KGS loan.
Term: Up to 7 years. A moratorium (grace period)
on principal repayments can be negotiated.
Interest rate: A margin over the prevailing interest
rate for KGS. The rate shall be based on the cost
of Treasury Bills issued by The Kyrgyz Government
or NBKR's prime rate or NBKR's bill rate and adjusted
monthly in accordance with movements in applicable
interest rate base. The margin will depend on
the size of the loan, the loan period, the perceived
risks associated with the loan and the funding
costs of KICB.
Repayment: Monthly repayments of interest only
shall be made during the principal moratorium
period. Thereafter, repayments of principal and
interest shall be made monthly/quarterly. The
amount of each repayment must be sufficient to
repay the loan within the term approved.
Fees/Expenses: KICB's normal fee structure will
apply. Fees may be capitalized or deducted from
the initial disbursement.
Early Repayment: 2 months notice of early repayment
is required. Repayment outside of this notice
may be subject to an early repayment penalty.
6. KGS denominated working capital loans
Available for: Hard core working capital requirements.
Currency: KGS.
Loan type: KGS working capital loan.
Term: Normally up to 1 year. This may be renewed
for a further year at the discretion of KICB.
In the event of a renewal, a principal repayment
of at least 20% of the original principal amount
will be required.
Interest rate: A margin over the prevailing interest
rate for KGS. If the rate is floating, it shall
be based on the cost of Treasury Bills issued
by The Kyrgyz Government or NBKR's prime rate
or NBKR's bill rate and adjusted monthly in accordance
with movements in applicable interest rate base.
The margin will depend on the size of the loan,
the loan period, the perceived risks associated
with the loan and the funding costs of KICB.
Repayment: The principal shall be repaid by one
bullet repayment at the end of the term of the
loan. Monthly repayments of interest only shall
be made during the loan period.
Fees/Expenses: KICB's normal fee structure will
apply. Fees may be capitalized or deducted from
the initial disbursement.
Early Repayment: One month's notice of early repayment
is required. Repayment outside of this notice
may be subject to an early repayment penalty.
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