Swiss Investment Fund
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MDO IMON International

IMON International is Tajikistan’s largest deposit-taking microfinance institution (MFI) and the country’s fourth largest financial institution in terms of borrowers, total assets, and gross loan portfolio. IMON was launched in 1999 with financial support from the US Agency for International Development (USAID), as one of the first microfinance initiatives in Tajikistan aimed at serving women entrepreneurs. SIFEM has decided to extend a USD 7 million loan in local currency (Tajikistan Somoni – TJS) to IMON. This transaction is SIFEM’s third direct debt investment in local currency and will be fully hedged through the TCX mechanism. As such, SIFEM’s loan will protect the MFI as well as end-borrowers from foreign exchange exposures. In addition, the loan will provide IMON with more flexibility to offer longer-term loans to its customers.

MDO IMON International

IMON International is Tajikistan’s largest deposit-taking microfinance institution (MFI) and the country’s fourth largest financial institution in terms of borrowers, total assets, and gross loan portfolio. IMON was launched in 1999 with financial support from the US Agency for International Development (USAID), as one of the first microfinance initiatives in Tajikistan aimed at serving women entrepreneurs. SIFEM has decided to extend a USD 7 million loan in local currency (Tajikistan Somoni – TJS) to IMON. This transaction is SIFEM’s third direct debt investment in local currency and will be fully hedged through the TCX mechanism. As such, SIFEM’s loan will protect the MFI as well as end-borrowers from foreign exchange exposures. In addition, the loan will provide IMON with more flexibility to offer longer-term loans to its customers.

About the fund

This transaction is an opportunity for SIFEM to support access to credit for micro and small businesses in Tajikistan, a SIFEM priority country. As the leading microfinance institution in the country, IMON currently provides financing to over 100,000 clients, with micro and small loans accounting for over half of its loan volume. As a result of recent changes in its shareholder structure, EBRD, FMO and the Luxembourg-based Alternative Fund, managed by Mikro Kapital, became major shareholders.

SIFEM’s loan to IMON is expected to strengthen the overall resilience and recovery of Tajikistan’s economy by fostering financial sector deepening (SDG 9). IMON’s targeting of low-income segments of the population should also contribute to the reduction of inequalities (SDG 10).

Reference code
2021-06
Status
Active
Date of commmitment
December 2021
Date of exit
-
SIFEM commitment
USD
7,000,000
Asset class
Private Debt
Investment strategy
Direct Investment
Fund manager
IMON International