Investing in Financial Institutions in the Kyrgyz Republic Experience of Bamboo Finance and ResponsAbility as Shareholders of Bai Tushum Bank
A Global Private Equity Group Bamboo Finance is a global private equity firm managing USD 250M with offices in Luxembourg, Geneva, Bogota, San Francisco, and Singapore. We invest in companies that provide “access” to essential products and services , such as financial services , healthcare, energy, housing, and education, for low income communities in developing markets. We partner with local and international like-minded investors to acquire minority stakes in companies while playing an active governance role , facilitating capacity building, ensuring greater efficiencies, and encouraging innovation. Our portfolio includes 35 investments in 24 countries including Kyrgyzstan , Nigeria, India, and Bolivia. Our mission is to help create more inclusive economies that will accelerate the next generation of leaders in financial services, healthcare, energy, housing and education.
Invest in New Perspectives USD 2 Billion+ AUM, one of the largest private investors in development finance Offices in Switzerland, France, Peru, Kenya, India Asset manager regulated by FINMA (the Swiss Financial Markets Authority) Founded in 2003, shareholders include a broad range of reputable Swiss financial institutions 120+ specialists with longstanding experience and expertise Debt and equity investments in 90+ emerging economies with an extensive track record in the financial sector (250+ financial institutions), agriculture, health, education, energy Strong focus on risk management, transparent reporting, and corporate governance
With a strong reputation in the market to comprehensively serve the "missing middle", the Bank serves its growing client base through a diversified product offering. The Bank strives to build a sustainable profitable financial institution, meeting the interests of its clients, partners, employees, and stakeholders. • one of the leading providers of MSME financial services in urban and rural Kyrgyzstan • gross loan portfolio exceeding US$ 91 million serving more than 32,000 clients across 65 branches, cash outlets • successful transformation from a small rural program into a national provider of financial services • successful in attracting significant international and local debt and equity partners • partnership with ResponsAbility as lender since 2005; and with Bamboo Finance and ResponsAbility as shareholders since 2011
2014 – BAI TUSHUM BANK 2012 – first deposit taking microfinance company to receive a full banking license in Central Asia 2011 – first microfinance company to receive deposit taking license 2009 – transformed into a regulated joint-stock microfinance company 2005 - transformed from an NGO into a licensed micro-credit company 2000 - established and sponsored by USAID, ACDI/VOCA, Caritas Switzerland
SIXTH LARGEST LENDER IN Total Loans, KGS mln KYRGYZSTAN 4,240 FOURTH LARGEST BANK IN TERMS 3,043 2,584 OF CAPITALIZATION IN 1,822 1,693 KYRGYZSTAN Total Equity, KGS mln 2009 2010 2011 2012 2013 880 729 729 Total Assets, KGS mln 569 494 6,536 4,801 4,002 2,775 2,478 2009 2010 2011 2012 2013 RANKS NINE IN TERMS OF 2009 2010 2011 2012 2013 PROFITABILITY IN KYRGYZSTAN
Investment Thesis: Why Bai Tushum? • One of the leading providers of MSME financial services to low- and middle- income segments in Kyrgyzstan with a solid performance track record • Highly professional operations , strengthened by robust credit methodology, sound policies and systems • Experienced and dynamic management team committed to the continued growth and development of the Bank • Underserved market with room to develop new financial products and services aimed at the specific needs of a largely agricultural market Bai Tushum was seeking like-minded equity partners to help in expanding and strengthen ing its equity base in view of bank transformation Attractive investment opportunity in Central Asia in a growing MSME finance market
Investment Success Factors • Institution with solid fundamentals : proven track record, standardized policies and procedures, strong culture committed to growth and development, strong market positioning • Strong management with aligned vision and buy-in to long-term strategy of institution • Like-minded and aligned partners : shareholders, technical partners, credit providers, and local professional bodies
Investment Success Factors • Overall regulatory environment conducive to implementation of strategic goals • Laws and regulations allow credit-only financial company to transform to full service commercial bank • Licensing process was clear, transparent, and smooth • Regulatory bodies encourage open dialogue with financial players with the aim to continuously improve and develop the regulatory environment
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