AKIPRESS.COM - The European Bank for Reconstruction and Development (EBRD) is reducing its stake in Demir Kyrgyz International Bank CJSC (DemirBank) from 15 to 7.5 per cent, by selling half of its shares to the largest shareholder of DemirBank.

The sale is part of the agreed exit strategy of the EBRD and International Finance Corporation (IFC) from their successful investment in DemirBank.

EBRD and IFC invested in DemirBank 17 years ago, when the bank was founded in the Kyrgyz Republic by a foreign sponsor. Since its establishment, DemirBank has become a pioneer in many fields of the banking sector. It has not only contributed to the development of the financial sector, but has also played a key role in corporate, small business and consumer lending.

DemirBank has also been vital in developing ties with other economies through its trade-finance activities and as a provider of long-term funding to local companies.

DemirBank is the first bank in the Kyrgyz Republic founded with foreign capital. Today, it is the leading retail bank and one of the top three banks in the country in corporate and SME banking and in terms of asset size.

Mike Taylor, EBRD Director, Financial Institutions, Central Asia, Caucasus and Mongolia, said: “After 17 years of working closely with DemirBank, we are happy to say that this cooperation has been, and remains, very successful. While we are selling half of our shares in DemirBank to the majority shareholder in accordance with our agreed exit strategy, we remain a shareholder and partner of DemirBank in the Kyrgyz Republic. We will continue working together to improve access to finance in the country, providing long-term funding, trade finance support and other financial instruments. We are confident that DemirBank will continue to be a success story in the future.”

Sevki Sarilar, General Manager of DemirBank, added: “We are pleased with the ongoing excellent cooperation with the EBRD, one of the largest international financial institutions supporting the private sector, which has been a shareholder in our bank. We appreciate the EBRD’s support during our successful transformation into a modern and sustainable bank, including during volatile and unstable periods in the past. We are delighted to have the EBRD as a shareholder and as a partner and we look forward to increasing our cooperation in the future.”