ADB, CIF, and Eldik Bank Expand Climate Finance in the Kyrgyz Republic
The Asian Development Bank (ADB) has approved a $1 million technical assistance grant to help Eldik Bank expand financing for climate adaptation investments by supporting farmers, entrepreneurs, and rural businesses facing growing climate-related challenges in the Kyrgyz Republic.
The technical assistance, financed by the Climate Investment Funds’ (CIF) Pilot Program for Climate Resilience (PPCR), will support the establishment of the Adaptation and Resilience Financing Facility (ARFF) at Eldik Bank. It will also strengthen the bank’s capacity to assess climate risks, identify adaptation financing opportunities, and develop appropriate financial products. The ARFF is intended to increase access to finance for businesses and agricultural producers, enabling them to invest in solutions that strengthen resilience, improve productivity, and protect livelihoods.
“We are pleased with the launch of a joint project with the Asian Development Bank, under which a climate adaptation financing mechanism will be established in cooperation with OJSC Eldik Bank. This initiative will bring together the efforts of the government, international partners, and the financial sector, creating a sustainable foundation for attracting long-term investment in the country’s priority climate projects,” said Nurbek Akzholov, Deputy Minister of Finance of the Kyrgyz Republic.
"With support from the CIF, ADB is helping build a pathway for climate finance to reach farmers, entrepreneurs, and communities facing growing climate risks," said ADB Country Director for the Kyrgyz Republic Zheng Wu. “By strengthening Eldik Bank’s capacity and developing a pipeline of viable investments, the initiative will help mobilize financing for water security, resilient food production, and sustainable economic growth."
"The facility represents a pioneering approach to climate adaptation finance in the Kyrgyz Republic," said Cindy Tiangco, Director of the Emerging Areas Team in ADB’s Energy Sector Office. "By partnering with a leading financial institution, we are creating a scalable mechanism that can channel climate finance directly to businesses while building the bank’s long-term capacity to support resilience investments."
"Supporting communities and businesses in adapting to climate change is becoming one of the most important priorities for the financial sector," said Ulanbek Nogaev, Chairperson of the Management Board of Eldik Bank. "Through our partnership with ADB and the CIF, we will expand financing opportunities for farmers and entrepreneurs, helping them invest in modern technologies that strengthen resilience, improve competitiveness, and create new opportunities for growth."
The technical assistance seeks to close gaps in the financial ecosystem by helping Eldik Bank develop dedicated adaptation finance products and strengthen its capacity to originate climate-resilient investments. Potential borrowers, particularly women-led businesses, will receive targeted advisory services to help them understand the benefits of climate-resilient technologies and prepare viable investment proposals. This focus has led to the initiative being tagged as under Gender Equality Objective (GEN), the highest among its four-tier system, attesting to the project’s intended contributions to the reduction of gender inequalities and women empowerment. The technical assistance will also support efforts to mobilize resources and develop a pipeline of adaptation projects for potential financing through the ARFF. Over the longer term, the initiative aims to establish a sustainable model for climate lending that can encourage broader investment in resilience across the Kyrgyz Republic’s financial sector.
