A new leasing company will start its operations in Kyrgyzstan during the fourth quarter of 2014 as per Shariah principles.

The leasing company in Kyrgyzstan will be the first standalone leasing company in the country and eventually the first leasing company to operate as per Shariah principles. 

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, Kazakhstan Ijarah Company, Eurasia Group AG, and Tredstone LLC have set up the company.

The capital of the new company will be $4.5 million.

The new company aims at rendering financial leasing services in the market of Kyrgyzstan, according to a press release.

The expected leasing portfolio structure will be composed mainly of agriculture sector and agri-related sectors, but will also include construction, housing, and the manufacturing sectors.

The new company will target the small and medium-sized enterprises and hence it will help in the economic growth of the country by supporting one of its important and largest segments, and hence aiding in the creation of job opportunities in the country.

Khaled Al-Aboodi, CEO of ICD, said: Financing small and medium-sized enterprises is part of the core strategy of ICD. The small and medium sized enterprises have a crucial role to play in the country’s growth and development, and ICD has big plans for them. ICD is now focusing on this sector by establishing Ijara leasing companies and investment funds.”

He added: “The expected leasing company in Kyrgyzstan aims to render a wide range of leasing services in the country. The priorities of the company are assistance to the development of economy through the financing of small- and medium-sized enterprises, introduction of new financial tools, financing of small and medium businesses producing competitive export oriented goods and having a high level of production localization.”

Kazakhstan Ijara Company JSC is “the first Islamic Leasing Company”, incorporated in April 2013 in Kazakhstan. The announced share capital is $40 million.

The shareholders of the company are a pool of international and local investors who has many years of experience in the finance and other sectors.

The Tredstone LLC provides buy side and sell side advisory for M&A transactions, advises on raising debt and equity capital for Kyrgyzstan companies.

The company was successful in closing a number of deals over the three years.

Also, Tredstone is the general partner of a private equity fund with focus on Kyrgyzstan.

Eurasia Group was founded in 1998 and its initial business was exporting the bio agricultural products from Kyrgyzstan to Europe.

Starting from year of 2000, they have switched their business from exporting to importing, and company started to supply food processing and packaging equipment to Kazakhstan and Kyrgyzstan.

In year of 2002, Eurasia Group became official distributor of John Deere (US) products for Kazakhstan and Kyrgyzstan.

Currently, Eurasia Group market share in premium class agri-technical sector is around 60 percent and share from the total agri-technical market is around 10 percent.

In Kazakhstan, Eurasia Group provides full line of service and products in agricultural sector.

Eurasia Group is a strategic partner of ICD and has equity share in Asr Leasing (Tajikistan) and Kazakhstan Ijara Company (Kazakhstan).