Bishkek, Kyrgyz Republic, 23 March 2011 – Her Excellency President Otunbaeva today officially inaugurated the new Head Office of the Kyrgyz Investment and Credit Bank (KICB) in the presence of Prince Rahim Aga Khan -- the eldest son of His Highness the Aga Khan - the founder and chairman of the Aga Khan Development Network (AKDN) one of the organisations that helped establish the bank.

KICB was set up in 2001 to issue short, medium and long-term loans to stimulate the development of small and medium-sized businesses throughout the Kyrgyz Republic. Currently, KICB serves over 27,000 clients throughout the region and operates a network of 16 branches in five oblasts in the Kyrgyz Republic. Speaking at the opening ceremony, Prince Rahim Aga Khan reiterated AKDN support for Kyrgyzstan and the central Asia region.

“I am here today to pledge the continuing support of the Aga Khan Development Network to the future growth of KICB, including its expansion into every part of this country—and, beyond that, to other countries of Central Asia,” he said.

The opening coincides with the 10th anniversary of KICB. The ceremony was attended by over 300 guests, including senior officials from the Parliament and Government, the National Bank, Board members of KICB, heads of diplomatic missions and international organizations, and customers of the Bank.

Earlier, the shareholders confirmed a decision to increase the charter capital from US$ 10 million to US$ 17.5 million in the second half of 2011. With this increase, the bank’s total capital and reserves are expected to reach US$38 million by the end of the year. “This investment marks an important milestone in our 10-year continuous presence in Kyrgyzstan,” said Mr. Kwang Young Choi, CEO of KICB.

“KICB is becoming one of the pillars of financial services in Bishkek.” “The proposed capital increase is a testament to our confidence in the Bank and our strong commitment to the Kyrgyz Republic,” said Mr. Sultan Ali Allana, Head of Financial Services at the Aga Khan Fund for Economic Development (AKFED) -- which operates the bank. “We are commited to playing a key role in the economic growth of the country,” he continued.

KICB was established in 2001 with the share capital of US$ 7 million. The Bank’s shareholders are the Government of the Kyrgyz Republic, the Aga Khan Fund for Economic Development (AKFED), Habib Bank Limited (HBL), Deutsche Investitions und Entwicklungsgesellschaft GmbH (DEG), European Bank for Reconstruction and Development (EBRD), and International Finance Corporation (IFC). KfW is a co-founder of the bank and also provides access to long-term financial resources.

KICB has gained a reputation as a “reliable bank” due to its transparent banking practices and the credibility of the shareholders. Since its establishment, the Bank has attracted over US$ 56 million in credit lines that were issued as long-, medium- and short-term loans. As the principal member of VISA International in Kyrgyzstan, KICB also offers a range of VISA card products to its customers. The Bank also supports the development of human resources through the KICB Training Centre, which is part of its corporate social responsibility program.

Located in the centre of Bishkek, at the intersection of Moskovskaya Street and Erkindik Boulevard, the new modern Head Office occupies four floors with a gross area of over 2,700 square meters. It is equipped with modern banking facilities and security system, which will further improve the quality of service of the Bank and increase its efficiency. The new building, which houses a number of operational units, can accommodate over 200 staff.

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The Aga Khan Fund for Economic Development’s (AKFED) mission is to build sustainable enterprises that contribute to economic development and create jobs in regions that are in need of foreign direct investment. It operates as a network of affiliates with more than 90 separate project companies employing more than 30,000 people and is active in 15 countries in Asia and Africa. AKFED works to encourage the creation of strong and efficient capital markets by providing an institutional umbrella for banks, insurance companies, tourism, media, aviation, industry and infrastructure development. AKFED is part of the wider Aga Khan Development Network (AKDN) – a private system of development agencies active in social, cultural and economic sectors in Africa, Asia and the Middle East. 

Habib Bank Limited (HBL) has the largest banking network in Pakistan with over 1450 branches in the country and presence in 24 countries around the world. With a balance sheet size of over $10 billion, the bank serves over 5 million customers in the area of Corporate, Retail and Consumer banking. HBL has subsidiary operations in the UK and affiliate relationships in Kenya and Nepal. 

Deutsche Investitions und Entwicklungsgesellschaft GmbH (DEG) has been specializing in long-term project and corporate financing for almost 40 years. DEG’s aim is to establish private enterprise structures in developing and transition countries and to use this as the basis for sustainable economic growth and a lasting improvement on people’s living standards in Africa, Asia and Latin America as well as in Central, Eastern and Southeast Europe. As one of the largest European development finance institutions, DEG has so far co-operated with more than 950 companies. 

European Bank for Reconstruction and Development (EBRD) seeks to foster the transition to an open market economy and to promote private and entrepreneurial development in all its countries of operations. EBRD acts as a participant investor with a private sector focus. 

International FinanceCorporation (IFC), a member of the World Bank group, promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve peoples’ lives. IFC finances private sector investments in emerging markets, mobilizes capital in international financial markets and provides technical assistance to Governments and businesses. IFC’s focus in the Kyrgyz Republic is on small and medium enterprises, micro-finance, financial sector, mining, agriculture and tourism.