EBRD Provides Up To $25 Million To Demir Bank To Expand Green Finance And Trade Support In Kyrgyz Republic

Businesses and households in the Kyrgyz Republic are set to benefit from new financing aimed at supporting green investments, climate resilience, and international trade, following a funding package of up to US$25 million (€21.5 million) from the European Bank for Reconstruction and Development (EBRD) to Demir Kyrgyz International Bank (Demir Bank).

Demir Bank, one of the largest lenders in the country, will use the funding to expand access to green finance and strengthen trade activities, helping local businesses invest in sustainable solutions while supporting economic growth.The largest portion of the package, a senior loan of up to US$20 million (€17.2 million), will be provided under the Kyrgyz Republic’s Green Economy Financing Facility (KyrSEFF III).

The financing is designed to address environmental challenges in a country that is increasingly vulnerable to the impacts of climate change.The funds will be made available to businesses and households either in US dollars or in synthetic local currency, the Kyrgyz som. The financing will support investments that improve climate resilience and adaptation, reduce pollution, promote energy and resource efficiency, and encourage the sustainable use of water resources.

By expanding access to green technologies and environmentally friendly solutions, the programme aims to help communities and businesses better manage climate-related risks while supporting the country’s broader sustainability goals.In addition to the green financing facility, the EBRD is increasing Demir Bank’s trade finance limit by up to US$5 million (€4.3 million) under its Trade Facilitation Programme (TFP).

The additional capacity will help private sector companies import essential goods, services, and equipment while also supporting exporters seeking to expand their reach in international markets.The Trade Facilitation Programme plays an important role in promoting international commerce across the regions where the EBRD operates.

Through the programme, the bank provides guarantees to international confirming banks, assuming both political and commercial payment risks associated with trade transactions conducted by participating local banks. This support helps facilitate cross-border trade and improves access to international markets for domestic businesses.

Demir Bank holds a unique position in the Kyrgyz banking sector as the first bank in the country established with international ownership and foreign capital. It has maintained a long-standing relationship with the EBRD and has been a client of the institution since 1997.The latest financing package reflects the EBRD’s continued commitment to supporting sustainable economic development in the Kyrgyz Republic.

Since beginning operations in the country in 1992, the bank has invested nearly €1.16 billion through 287 projects, with a strong focus on sustainable infrastructure, private sector development, and initiatives that strengthen economic resilience and environmental sustainability.