Bailyk 3

Bailyk

Компания

Киргизстан

Държава

Проектът

PLEASE NOTE: this is a project where the EUR proceeds will eventually be transferred as USD to the issuing entity. The issuer’s obligation is to pay back the USD amount plus interest. Their repayments in USD will be converted to EUR, which will be put on your wallet. It means that you run an exchange rate risk on this project. The return may be higher or lower than expected in advance. At the moment the interest rate differential between USD and EUR is such that the interest rate on USD projects is, net of conversion costs, between 0.5-1%point higher. Read here for more information.

About the company

Micro-credit company Bailyk Finance LLC, founded in 2011, is a Bishkek-based microfinance organization with the mission to improve rural and small cities’ residents’ quality of life by creating affordable financial solutions. The company currently serves its client base of around 45 000 people with its 43 offices located throughout all regions of the Kyrgyz Republic.

Bailyk Finance offers a range of secured and unsecured credit products, including green loans and home improvement loans, to low-income residents of rural areas and small cities with no access to banking services. Over 80% of the credit portfolio focuses on financing income-generating activities, mainly agriculture. In addition to providing funding, the company conducts financial literacy workshops for its clients and offers training on agriculture financing, improving living conditions, and green finance.

The company puts innovation at the forefront of its development by regularly launching new projects that improve clients’ access to financing, simplifying the process of obtaining financing, and reducing operating costs. On November 22, 2021, the Company received the license to carry out Islamic financing.

Over 2018-2021 Bailyk Finance has more than tripled its loan book and reached US$30M making the company the third-largest MFI in Kyrgyzstan. Despite the pandemic and worsening economic climate in Kyrgyzstan, the company has maintained one of the lowest portfolio-at-risk ratios (2.8% PAR 30 in Q4 2021) in microfinance. The company’s total equity as of Q4 2021 is about US$5.8M.

About the loan

With a EUR 230,000 loan, Bailyk Finance will provide financing to about 500 individual entrepreneurs and farmers in rural areas of the Kyrgyz Republic.

The main activities of Bailyk Finance are as follows:

• Micro-crediting of individuals of the Kyrgyz Republic, as well as provision of consulting and information services related to the provision of microcredit services.
• Carrying out transactions according to the principles of Islamic banking and finance in the manner prescribed by the legislation of the Kyrgyz Republic.

The Company’s main sources of income are interest and fees earned on the individual loans it provides. Currently, the Сompany has about 45 000 clients and about 56 000 number of outstanding loans. The Company reaches its clients through 43 branches situated throughout the country. Every year the company is expanding its geography by opening new branches, mainly in rural areas. In 2022, it is planning to open about 6 new offices. About 95% of the Company’s GLP are repaying on time according to schedule. The minimum loan maturity is 1 month while the maximum loan maturity is 36 months.

Mission

Contribute to the quality of life improvements for the rural population of Kyrgyzstan by offering accessible financial solutions

Vision

To become:

• A leader in the microcredit sector;
• The best brand for customers;
• The best employer on the market;
• A socially responsible company in society.

Awards

• In December 2019, Bailyk Finance received Financial Rating from the international rating company MFR (MicroFinanza Rating). It was graded: BBB, outlook: Stable.
• In February 2022, Bailyk Finance received Client Protection Certification from the international rating company MFR (MicroFinanza Rating). The Company was assigned the «Gold» level of achievement, which is considered the highest level of achievement.