Shinhan Card's Kazakhstan arm secures $60 mn from IFC

Shinhan Finance, a subsidiary of South Korea's Shinhan Card in Kazakhstan, has attracted a $60 million investment from the International Finance Corporation (IFC), according to the company announcement on Wednesday.

This collaboration follows a memorandum of understanding (MOU) signed in May between the parent Shinhan Financial Group and IFC to bolster ties in the global environmental, social, and governance (ESG) sectors.

"Recognition of our growth in the vehicle finance market and our commitment to social contributions played a pivotal role in securing this investment," a Shinhan Card source commented.

The financing, sourced at a rate lower than the current market, has a maturity of five years, hinting at significant cost savings.

Out of the total amount, Shinhan Finance will first utilize $20 million for vehicle financing operations. Additionally, a portion is earmarked to develop products targeting local female-owned small and medium-sized enterprises (SMEs) that face financial access challenges.

Founded in November 2014, Shinhan Finance operates in Kazakhstan's key cities: Almaty, Astana, and Shymkent. It currently ranks fifth among over 230 retail loan providers in the country.

The IFC, part of the World Bank Group, is a significant player in promoting private sector investments in developing nations. Last year alone, it facilitated private investments worth about $43.7 billion in over 100 countries.

Write to Mi-Hyun Jo at mwise@hankyung.com