Invitation to Invest in a New Islamic Bank in the Kyrgyz Republic
The National Bank of the Kyrgyz Republic, in partnership with the Islamic Development Bank (Jeddah, Kingdom of Saudi Arabia (IDB)) is inviting interested investors in participating in opening a new full-fledged Islamic bank in the Kyrgyz Republic.
As you are kindly aware, one of the strategic objectives of IDB is to promote and develop the Islamic finance industry globally. One of the direct means of doing that is the participation in the establishment of Islamic financial institutions.
Recently, IDB along with the Government of the Kyrgyz Republic (through the National Bank of the Kyrgyz Republic (the National Bank)) have joined effort to work on establishing the first Islamic Bank in the country. In this context, a market study and a business plan were prepared, which indicated significant demand in this promising market for the first Islamic Bank in the country.
The Economy of the Kyrgyz Republic has shown a stable growth over the last several years. Although, the country is small with 6 million population of which 90% are Muslims, it became a member of Eurasian Economic Union with 180 million population. Islamic Banking and Finance is new in the region and it has a big potential with the growing demand, both within the Republic and in neighboring countries. In addition, the National Bank has adopted several regulatory changes to give an equal opportunity for Islamic Banks to operate in the country.
IDB and the National Bank are seeking an experienced technical partner who can invest in this project and provide the managerial, technical and governance expertise. The technical partner would put in place the policies, procedures, and IT systems for the bank to run efficiently and effectively. The technical partner would also have board representation.
The targeted capital of the institution is around USD 25 million and with such equity capital, the prospective financial institution would be considered one of the largest banks in the country. The equity IRR is estimated to range between 22% and 38% depending on the assumptions.
Although, the National Bank and IDB are expected to be together majority shareholders, both would not be involved in the day-to-day management of the bank.
If an institution is interested to explore the opportunity of becoming a co-investor along with IDB and the National Bank, we can share the studies prepared on this project after signing an NDA. In addition, representatives from IDB and the National Bank can visit your offices to give a detailed presentation on the opportunity.
For any query, please contact IDB focal point on this project, Br. Mohamad Midani (e-mail: firstname.lastname@example.org, Tel: +966 12 646 7452), The National Bank of the Kyrgyz Republic, Banks Supervision Methodology and Licensing Department, Head of Islamic Financial Products Division, Mr. Urmatbek Razzakov (e-mail: email@example.com, Tel: +996 312 66 92 51).