The EBRD and Bank CenterCredit launched an €18 million supply-chain finance framework in Kazakhstan, with the EBRD sharing half the risk on reverse factoring provided by BCC. The first project supports Air Astana’s local suppliers — many SMEs contributing nearly 40% of Kazakhstan’s GDP. Financing enables early invoice payments, improving cash flow while allowing Air Astana to extend payment terms. ESG integration includes upcoming carbon emissions reporting requirements and advisory support via the EBRD’s Advice for Small Businesses programme.
According to www.ebrd.com, the European Bank for Reconstruction and Development (EBRD) and Kazakhstan’s major private lender Bank CenterCredit (BCC) have launched an €18 million supply-chain finance framework, structured as a reverse factoring facility. Under the agreement, the EBRD will share half of the risk on supplier financing extended by BCC — marking a strategic effort to strengthen working capital access for local enterprises in Kazakhstan.
First Project Supports Air Astana’s Local Suppliers
The inaugural operation under the framework targets suppliers of Air Astana, Kazakhstan’s flagship carrier and an EBRD investee company. The five-year facility operates on an unfunded basis for the EBRD, with BCC serving as administrator. Proceeds will enable early invoice payment — at a discount — for Air Astana’s selected vendors, improving their cash flow and reducing dependence on traditional working capital instruments.
Air Astana sources more than 30 per cent of its operating costs locally, including office supplies, catering, maintenance, and entertainment services. The facility is expected to benefit local small and medium-sized enterprises (SMEs), which constitute the backbone of Kazakhstan’s economy: they contribute nearly 40 per cent of GDP and employ more than 4.4 million people.
ESG Integration and Advisory Support
As part of broader sustainability commitments, Air Astana will soon require environmental impact data from its suppliers — particularly on carbon emissions — following adoption of new procurement standards and relevant certifications. To support compliance, the EBRD will deliver tailored assistance via its Advice for Small Businesses programme, helping suppliers meet environmental, social, and governance (ESG) requirements.
This initiative builds on the EBRD’s long-standing engagement in Kazakhstan, where it has invested almost US$12 billion (€10.2 billion) across 345 projects — making the country the largest and longest-running recipient of EBRD investment in Central Asia.
Industry Context and Practitioner Implications
Supply chain finance (SCF) frameworks like this one are gaining traction globally as tools to de-risk supplier portfolios and improve liquidity resilience — especially in emerging markets where SMEs face acute financing gaps. Similar structures have been deployed by the IFC in Egypt and Vietnam, and by the Asian Development Bank in Uzbekistan, often targeting local currency lending and ESG-aligned procurement. For supply chain professionals, such facilities signal growing institutional willingness to absorb counterparty risk — but also require robust supplier onboarding, invoice validation, and data transparency protocols. Early-payment terms must be balanced against extended payables cycles to avoid straining buyer-supplier trust. Moreover, integrating ESG reporting into SCF eligibility criteria — as Air Astana plans — reflects a broader trend: leading corporates increasingly treat financial inclusion and sustainability as interdependent levers of supply chain stability.
Source: www.ebrd.com
Compiled from international media by the SCI.AI editorial team.
