Business plan

for
Muslim project

1
 TABLE OF CONTENTS
Confidentiality Agreement ..............................................................................................................................................4
1.0 List of table and figures ............................................................................................................................................5
2.0 Executive Summery ..................................................................................................................................................6
3.0 Introduction ...............................................................................................................................................................7
3.1 Introduction to the project ..........................................................................................................................................................................................7
3.2 Introduction to the real estate industry in Kyrgyz Republic .................................................................................................................................7
3.3 Expected project outcome..........................................................................................................................................................................................7
3.4 Introduction to the report ...........................................................................................................................................................................................8
4.0 Project legal status....................................................................................................................................................9
5.0 Project partners .......................................................................................................................................................10
5.1 The project initiator – Islamic Development Fund IDF CA ..................................................................................................................................10
5.2 Project partner- non-profit Islamic cooperative IFC ...........................................................................................................................................11
3. Project partner- Fiesta Trade Company .............................................................................................................................................................12
5.4 The project partner- Abris Grand ..........................................................................................................................................................................15
6.0 SWOT analysis ........................................................................................................................................................16
7.0 Marketing strategy..................................................................................................................................................17
7.1 Real estate properties offered by the project ....................................................................................................................................................18
7.1.1 Segment 01: Economical housing segment with 7,500 individual houses. ..............................................................................................................................19
7.1.2 Segment 02: 30 social towns with 500 residential buildings in 9 regions to cover 15,000 houses in total. ...................................................................20
7.1.3 Segment 03: 100 small and medium size businesses near the above social towns. .............................................................................................................24
7.1.4 Segment 04: 375 modern residential 4-storey buildings with 20 apartments. ....................................................................................................................25

2
 7.2 High level overview for the business strategies...................................................................................................................................................30
7.3 High level overview for the marketing plan ........................................................................................................................................................33
8.0 Financial overview .................................................................................................................................................33
8.1 Budgeted expenses analysis for 2022- 2030 periods. ....................................................................................................................................33
8.2 Summary of financial results ...................................................................................................................................................................................34
8.2.1 Forecasted income statement ..........................................................................................................................................................................................................34
8.2.2 Forecasted financial position ...........................................................................................................................................................................................................37
8.2.3 Forecasted cashflow ..........................................................................................................................................................................................................................39
3. Summarized cash flow and ratio analysis ..........................................................................................................................................................42
3.1. Summarized cash flow analysis .......................................................................................................................................................................................................42
8.3.2 Payback period analysis ..................................................................................................................................................................................................................45
3. IRR (Internal rate of return) analysis .........................................................................................................................................................................................46
8.3.4 NPV (Net present value) calculation ..............................................................................................................................................................................................46
4. Final Summary..........................................................................................................................................................................................................48

3
 Confidentiality Agreement

This agreement is to acknowledge that the information provided by IDF CA «Islamic Development Fund of Central Asia in this business
plan is unique to this business and confidential; therefore, anyone reading this plan agrees not to disclose any of the information in this
business plan without the written permission of IDF CA «Islamic Development Fund of Central Asia. It is also acknowledged by the reader
of this business plan that the information furnished in this business plan, other than information that is in the public domain, may cause
serious harm or damage to IDF CA «Islamic Development Fund of Central Asia and will be kept in the strictest confidence.

Upon request, this document is to be immediately returned to IDF CA «Islamic Development Fund of Central Asia.

Signature ____________________

Name (typed or printed) ________________________

Date ___________________________
This is the business plan for IDF CA «Islamic Development Fund of Central Asia. The presentation of this business plan does not imply an
offering of securities.

4
1.0 List of table and figures
Figure 1: Project profile .........................................................................................................................................................................................................6
Figure 2: SWOT analysis.....................................................................................................................................................................................................12
Figure 3: Segment 01- payment structure .......................................................................................................................................................................14
Figure 4: Segment 02- project design view.....................................................................................................................................................................15
Figure 5: Segment 02- Project design view 02...............................................................................................................................................................16
Figure 6: Segment 02- Layout plan...................................................................................................................................................................................17
Figure 7: Segment 02- payment structure .......................................................................................................................................................................18
Figure 8: Modern 04 story residentials 3D view ............................................................................................................................................................20
Figure 9: Segment 04- floor plan ......................................................................................................................................................................................21
Figure 10: Segment 04- payment structure .....................................................................................................................................................................22
Figure 11: 3D view of proposed houses and apartments ............................................................................................................................................22
Figure 12: Market strategies ..............................................................................................................................................................................................24
Figure 13: Marketing plan ..................................................................................................................................................................................................26
Figure 14: budgeted expenses analysis ...........................................................................................................................................................................27
Figure 15: Forecasted income statement ..........................................................................................................................................................................28
Figure 16: Forecasted financial position ..........................................................................................................................................................................29
Figure 17: Forecasted cashflow statement .......................................................................................................................................................................30
Figure 18: Summarized cash flow analysis ......................................................................................................................................................................31
Figure 19: Payback period analysis .................................................................................................................................................................................32
Figure 20: IRR calculation ....................................................................................................................................................................................................32
Figure 21: NPV calculation .................................................................................................................................................................................................32

5
2.0 Executive Summery
IDF CA, Islamic Development Fund of Central Asia in collaboration with non-profit Islamic cooperative IFC, Fiesta Trade Company
engage in construction industry, Abris Grand engage in architectural design industry, Local state administrations, Local and City councils
of deputies have planned a real estate project in Kyrgyz Republic. The project is aiming to provide affordable housing in accordance
with Sharia standards - for 150,000 citizens of Kyrgyz Republic, as well as supporting business projects with the creation of 15,000
additional jobs in the regions of the country. The project will be expected to cost over 1,500mn USD in total and it will be expected to
fund through Contribution of IDF and IFC by 88mn USD, Contribution of local state administrations by 319mn USD and 1,147mn USD
through long term borrowings. The project will expect to run for total in eight years out of which four years will be taken for the
construction process and balance four years will be taken for the property realization process.
Kyrgyz Republic is a mountainous country located in Central Asia bordered to Kazakhstan to the north, Uzbekistan to the west, Tajikistan
to the south, and China to the east. The country has around 6.5mn population as of now how are mainly engage in agricultural sector as
their livelihood. The country is a middle level income country, and mainly having housing shortage for the citizens in the country. As per
the forecasts and capacity of the government, government alone would not be able to address this issue within a reasonable and
acceptable time period. Accordingly, the government has encouraged the private sector to come to the real estate market with
reasonable investment capacity to invest in the country, considering the growing market opportunities. Further, with such available
opportunities, there are many real estate players in operation within the country as of now. Further, with such competitor growth, there is
also unethical competitive practices within the real estate industry.
The report has been looked into the proposed social investment project from the financial perspective, marketing perspective as well as
from the competitive environment perspective. Accordingly, it was noted that the project will be capable to generate positive outcome to
Kyrgyz Republic, while it will also be creating wealth to the investors.

6
3.0 Introduction
3.1 Introduction to the project
IDF CA, Islamic Development Fund of Central Asia in collaboration with non-profit Islamic cooperative IFC, Fiesta Trade Company
engage in construction industry, Abris Grand engage in architectural design industry, Local state administrations, Local and City councils
of deputies have planned a real estate project in Kyrgyz Republic. The project is aiming to provide affordable housing in accordance
with Sharia standards - for 150,000 citizens of Kyrgyz Republic, as well as supporting business projects with the creation of 15,000
additional jobs in the regions of the country. The project will be expected to cost over 1,500mn USD in total and it will be expected to
fund through Contribution of IDF and IFC by 88mn USD, Contribution of local state administrations by 319mn USD and 1,147mn USD
through long term borrowings.

3.2 Introduction to the real estate industry in Kyrgyz Republic

Kyrgyz Republic is a mountainous country located in Central Asia bordered to Kazakhstan to the north, Uzbekistan to the west, Tajikistan
to the south, and China to the east. The country has around 6.5mn population as of now how are mainly engage in agricultural sector as
their livelihood. The country is a middle level income country, and mainly having housing shortage for the citizens in the country. Even
though, the government has taken vast initiatives to address such issues, the government capacity along will not be able to overcome this
matter within an acceptable time period. Based on a government decision in 2021, State Mortgage Company OJSC was established
with around 100mn USD funding to address the housing shortage of the country, however, as per the current housing needs and their
cost, the government would take around 135 years to address the matter in full.
Accordingly, the government has encouraged the private sector to come to the real estate market with reasonable investment capacity to
invest in the country, considering the growing market opportunities. Further, with such available opportunities, there are many real estate
players in operation within the country as of now. Further, with such competitor growth, there is also unethical competitive practices within
the real estate industry.

3.3 Expected project outcome

The main objective of the project to operate in Kyrgyz Republic is supporting to address its housing shortage for its community. Also, it is
further expecting to make available reasonable quantity of houses at affordable prices to the community. Accordingly, the project will
have below positive social impact;
7
 - The project will generate houses for around 150,000 citizens, which is for around 35,000 families.
- It will also generate 7,500 affordable houses under the IFC-Real Estate program in the secondary housing market.
- Around 7,500 families will be benefitted with new residential 4-storey buildings under the IFC-Low-Rise Buildings program.
- Around 60,000 citizens, that is 15,000 families will be provided with residential buildings in social towns under the IFC-
Sotsgorodok program.
- More than 15,000 jobs will be created for the community during the construction process and in small and medium size business
around the social towns.
- The whole project will support to consolidate the Muslim communities into a single corporation, where it will support to enhance
their cultural bond and religious activities.
The project will also create following positive impact to its economy as well as individuals’ economy;
- This project will increase the availability of houses which will support to reduce the housing shortage in the country.
- The project has planned to grant significant cost savings for the individuals, which is around 30 percent to 40 percent.
- Small and medium size businesses as well as the construction process will expect to generate significant number of new jobs,
which will support to increase the income level of such community.
- This project will bring emerging technologies, designs to the country.

3.4 Introduction to the report

The business plan was compiled as an in-depth to understand the core features of “Social Investment Project”, planned to execute in
Kyrgyz Republic. The report has been looked into the legal status of the company and its ability to function in Kyrgyz Republic,
investment partners to the project and their core competencies which will support to attain the project success, high level SWOT analysis,
features of properties offered through the project and so on. Further, a marketing plan was designed as a high-level guidance to the
management in planning their market approach. Further the financial results were summarized in the form of forecasted income
statement, financial position and cashflow for the reference of the investor.

8
4.0 Project legal status
Organization IDF CA «Islamic Development Fund of Central Asia»
Legal adress: Kyrgyz Republic, Bishkek, Tolgolok Moldo street, no. 114/1
Number and date of registration by № 202383–3301-fiscal code from 23.03.2022 y.
the Ministry of Justice
Contacts www.idfca.org
info@idfca.org
phone number: +996778777177
Project name Social investment project «Muslim»
Brief summary of the project The «Muslim» project is aimed at creating conditions for the purchase of automotive and special
equipment, affordable housing in accordance with Sharia standards - for 150,000 citizens of the
Kyrgyz Republic, as well as supporting business projects with the creation of 15,000 additional jobs
in the regions of the Kyrgyz Republic.
Project implementation geography Kyrgyz Republic (9 regions of Kyrgyz Republic)
Project implementation period 2022–2030 y.
Total project implementation cost 1 554 000 000 $
Contribution of organizations (IDF 88 000 000 $
and IFC)
C o n t r i b u t i o n o f l o c a l s t a t e 319 000 000 $
administrations (ground and connection to communications)
Required investment by year 2030 1 147 000 000 $

9
 Project partners
Benefits of investing in a project
- Non-profit cooperative IFC
- Limited liability company «FiestaTradeCom»
- Limited liability company «Abris Grand»
- Local state administrations
- Local and City councils of deputies
- reliability;
- Official conclusion of the investment agreement;
- Project stability with a yield of 19%;
- Investments in projects that comply with the rules and principles of Shariah;
- 100% investment return guarantee.

Figure 1: Project profile

5.0 Project partners

5.1 The project initiator – Islamic Development Fund IDF CA
IDF CA is an international public organization registered as a public foundation, which operates in accordance with the laws of the
participating countries, the laws on public funds, the regulations of the participating countries and Sharia standards.
The main goal of the IDF Foundation and its representation in Central Asia is to actively promote the spread of Islamic financial
instruments and support socio-economic projects that contribute to the overall development of the economies of the participating
countries and the growth of their peoples.
Key challenges facing by IDF CA:
- Search for organizations and projects in the CA countries that could make a significant contribution to the implementation of the
IDF goals and that require worthy investment.
- Search for investments, aggregation and activation of funds from participation and shareholders.
- Provision of aggregated financial resources using various Sharia-compliant financial instruments for the implementation of
statutory goals, as well as for the implementation of approved projects (project investment), including projects to improve the
living conditions of citizens, provide automotive and special vehicles for use, as well as creation and support of small and
medium-sized businesses with the opening of additional jobs.

10
 - Using in its activities such methods and methods of financing as: Murabaha (financing on the basis of costs and profits), Ijara
(leasing), Istisna (financing construction), Salam (forward purchase of goods), Mudarabah (passive partnership), Musharaka (joint
venture) ) and Qard-ul-Hasan (interest-free loan). IDF CA is fundamentally focused on a real meeting - both at the ordinary level
and at the level of society. This orientation makes it possible to set on real production and not to allow opportunities for usury
and speculation by revealing either time or revealing future results of labor.
The governing bodies in IDF CA are:
- Founder (main administrative functions)
- Director (executive functions)
- Board of Directors (supervisory functions and coordination).
In its activities for the creation and development of Islamic financial instruments, IDF CA relies on non-profit Islamic cooperatives (IFC),
which are being opened in many countries of the world, as strategic partners.

5.2 Project partner- non-profit Islamic cooperative IFC

The main idea of the IFC Cooperative is to provide an alternative to those who would like to avoid existing financial institutions based on
interest and use investment opportunities.
accordance with Sharia, as well as making a halal contribution to the overall development of the economy of the participating countries.
IFC is an international organization created to promote social development and improve the economic situation of citizens through Islamic
financing instruments. (IFC cooperatives have been established in various countries of Central Asia and in the Russian Federation).
In Kyrgyzstan, IFC was established in 2021 and registered with the Ministry of Justice of the Kyrgyz Republic on March 23, 2022 under
registration number 202383-3301- fiscal code.
IFC is not only an alternative to interest-bearing financial institutions, but also provides halal investment opportunities and profits.
At the moment, the most active participant in the project is the IFC Cooperative of the Kyrgyz Republic; its branches are registered and
operate in 9 regions of the Kyrgyz Republic (in all 7 regions of the Republic and two cities of republican significance - Bishkek and Osh).
All successful management, financial and business technologies tested in the Kyrgyz Republic are then scaled up and used in other
participating countries.

11
The governing bodies in IFC are:
- General meeting of members of the cooperative
- Сo-operative board
- The audit committee of the cooperative.
In accordance with the requirements of the legislation of the participating countries, other governing bodies may be created.

General Meeting of IFC members

IFC Audit
IFC Sharia Council IFC Board
Commission

One of the core governing bodies in IFC is the Sharia Council. They are responsible for ensuring all products and services offered by this
institution comply with the principles of Shariah. The IFC ahs employed around 100 employees and pays 285 USD monthly salary in
average.

3. Project partner- Fiesta Trade Company

Fiesta Trade Company is a limited liability company, located in Bishkek, Leninsky district, Nizhny Jal, st. Isa Akhunbaeva, 90/5. The key
expertise of the company includes;

12
 - Civil and industrial construction of buildings and structures.
- Execution of construction, installation and repair work, preparation of estimate documentation of the 2nd level of responsibility.
The company is also having special partnerships with following companies ensuring better value addition to the project.
– company "Special equipment";
– Limited liability company «ZHBI Story» which includes 9 concrete mixers of the Mercedes brand: 8m3-3 pieces; 11m3-3pcs; 12m3-2
pcs; 15 m3-1 pieces; also, in the plant's fleet there are three concrete pumps of the Mercedes brand, one of which is the highest in the
Kyrgyz Republic: 37 m; 42 m; 65 m;
– Production base Limited Liability Company «Istok», privately owning the following equipment:
o Front loader XCMG LM 300 F 2013, bucket capacity 1.8 m3
o Front loader XCMG ZL 50 GL 2013 bucket capacity 3m3
o Vibroroller XCMG XS 120 A 2004 12.5 tons
o Three excavators Hyundai 1400 Robex W-7 2005; 2007; 2007 bucket volume 0.6m3
o Four excavators Hyundai 555 W-7 2003; 2008; 2008; 2008 bucket volume 0.2m3
o One Hyundai excavator with a bucket capacity of 0.85 m3
o One forklift with a bucket capacity of 3m3
o One forklift with a bucket capacity of 1.8m3
o Eight dump trucks Kamaz 5511 1985-1992 with a loading capacity of 12 tons.
o One Crane KOBELCO RK-250 1989 load capacity 25t.
o One Bulldozer T-100 1989.
o One grader DZ-180 1994
o One Gas-53 dump truck.
o One Mercedes Sprinter.
13
"Fiesta Trade Com" staff: more than 70 people: (among them two PTOs (Handling equipment) and twelve engineers of various profiles),
who are highly qualified specialists with extensive practical and engineering and technical experience. Following are a list of significant
projects handled by the company before;
o "House of Italian Furniture" on the street. Kyiv / Soviet
o Five private mansions in the VIP town "Ala-Archa 1»
o Private medical clinic on 4 floors on the street. K-Akieva
o Embassy of Japan, on «st. Bokonbaev - Razzakov»
o Bank on the street. Kievskaya-Panfilova
o Institute "ISITO" st. M-Gandhi
o Reconstruction of the store "Azat Mebel" 9m-rn. (Souf Gade)
o Overhaul of the shopping center "Frunze" on the street. Lev Tolstoy
o Major overhaul of the School of the Olympic Reserve. Sydykov
o Office premises UVT MO KR
o Shop "Voentorg" st. Kyivskaya
o Toktogul, "Building of the ISITO Institute"
o Reconstruction of the Embassy of the Republic of Belarus
o VPZ Kant production area 2 hectares, with the construction of a railway line
o 9-storey residential building on the street. Abdumomunova 240 (former Kirov)
o 9-storey residential building Mr. "Jal" st. Akhunbayeva / Kurchatov
o Health-improving center "Albatross", 12 microdistrict
o A plant for 15,000 dal for the production of alcohol on the territory of 1.8 hectares of Kyrgyz Konyagy LLC
o Private educational complex "OXFORD INTERNATIONAL SCHOOL" 7,000 m2 on the street. Mira 249/1
14
 o 8-storey residential building in the Ala-Too residential complex, Tunguch microdistrict
o Plant for the production of tomatoes in the village. Krasnaya Rechka on an area of 1.7 hectares
o Construction of the Pulp Press Shop in the city of Kaindy JSC «Kaindy-Kant"
o 12-storey residential complex with underground parking, public facilities and a sports complex on the street Sayakbay
Karalayev.
o Sayakbay Karalayev. Construction of the restaurant "Pishpek" on the street. Togolok Moldo, former «Bacardi.»
o Construction of the Mega City Shopping Center and the Globus supermarket in Tokmok on 6200 m2
o Construction of the store "Two Foremen" in the village. Kok-Zhar 1270 m2.
o Construction of a 12-storey residential building with social and cultural facilities and a 5-storey office building on the street.
Ryskulov 110, 112, 114.
o Construction of office premises and a buffer zone (with warehouses) for the Narodny store in Cholpon-Ata
o Construction of the administrative building of the University "ISITO" on the street. Mahatma Gandhi 2200 m2
o Construction of a boarding house in the village. Kosh-Kol, Issyk-Kul region, Central District
o Construction of seven five-story blocks in the VIP Town "Nice" 38400 m2, etc.

5.4 The project partner- Abris Grand

The architectural and construction company «Abris Grand» is engaged in design and design activities in the field of industrial and civil
construction.
15
Main activities:
o Architecture and design
o Interior Design
o Exterior design
o landscape design
o Finishing work
o Design of residential and public buildings
o Construction works
o Turnkey construction
There are all licenses (without restrictions on the terms of activity), as well as certificates for the types of activity 41.10.0 - "Development
of construction projects"

6.0 SWOT analysis

SWOT analysis identify strengths, weaknesses of the company and opportunities, threats of its operating environment. Analysis of SWOT
in detail will help the strategy maker to identify company strengths in detail, to get competitive advantages by matching external
opportunities with internal strengths and to convert weaknesses and threats to strengths and opportunities.

16
 Weaknesses:
Strengths:
- Having law reputation for the project partner locally.
- Attractive interior designs.
- Being a new player to the industry.
- Strict compliance over rules and regulations.
- Legal approvals required to be taken before move forward.
- Convenient payment method for buyers.
- Expected lower profitability.
- Guaranteed profitability and strong cash position.
- Limited construction capacity.

Summerised
SWOT analysis

Threats:
Oppertunities:
- Extensive competition in the market.
- Housing shortage in the country.
- Extensive competition among finance companies.
- Possible government support for the project.
- Risk of failure to obtain governmental approval.
- Possibility to reduce the construction cost of apartments.
- Risk of unforeseen cost increments.

Figure 2: SWOT analysis

7.0 Marketing strategy

Despite the size of a business, a well-defined marketing plan is vital to each end every organization for its sustainable development. A
marketing strategy or a plan define as to how the goods or services position in the market, rather than just selling those goods or
services, assuming those are fit for everyone. A comprehensive marketing plan will outline and guide the management on how a business
17
is positioned in the industry among rivals, what is the target segment or the audience, how to market its goods and services, How the
organizational core values including vision and mission has been aligned to provide a better service to the customer and also as to how
the customer loyalty enhance and as to how existing customers are retained within the business.
A marketing plan is important for the management, as it define and guide the management on making sales and meeting targets. As this
has properly and carefully define core objectives in marketing aspect and as it provides a directional guide to organizational
strategies, it will enhance the focus of management. Since each action/ activity is carefully designed, this will support the management to
plan and manage resource effectively, rather than wasting resources on ad-hoc marketing activities, which may not give the results as
plan. Also, a marketing plan will enhance the transparency of marketing spending. Reason is, ultimate goal of the plan is to enhance
organizational earnings, profitability and thereby increase return on investment at long run. As such, via the plan management can
oversee the effectiveness of spending. Further, a marketing plan will ensure the consistency of marketing activities. As a result, this will
provide a long-term direction for the management in resource allocation for the related activities. Additionally, this will provide a clarity
on what the management is doing, what is expected by each spending or activity, where the business will be in few years ahead and so
on.

7.1 Real estate properties offered by the project

The project will expect to generate following real estate properties for the community in Kyrgyz Republic. Specially, the project will focus
on Islamic community within the country and execution of project in accordance with the Sharia principals.
1. Purchase of real estate in the secondary market (Economy class) for their subsequent transfer by installments to 7,500 families
(borrowers) according to the Islamic principles of Murabaha. *)
2. Construction of promising social towns with developed infrastructure (30 towns for 500 residential buildings in 9 regions of
the country) for the subsequent transfer of households to borrowers in installments according to Islamic principles Ijara va iktin.
**)
3. Creation near the territories of 30 social towns up to 100 new industries (business projects) in the areas of activity approved
by the National Investment Agency under the President of the Kyrgyz Republic - on the principles of Mudaraba ***)
4. Construction of 375 modern residential 4-storey buildings with 20 apartments each (according to IFC's own project) on land
allocated by local and state authorities specifically for housing construction - with the transfer of apartments to borrowers in
installments according to Islamic principles Ijara va iqtina. **).

18
 5. Purchase of up to 10,000 units of automotive and special vehicles in order to transfer it to citizens for use (leasing) through
interest-free loans and subsequent distribution of profits in equal shares - on the principles of Mudaraba *).
Detail discussion to each property type and their features, designs will be as follws;

7.1.1 Segment 01: Economical housing segment with 7,500 individual houses.
Being a middle level income generating country and considering the majority of individuals’ purchasing power and affordability, designing matching property for
them has become a challenge for the real estate industry players. However, housing shortage in Kyrgyzstan is more than 30 million square meters and it is
approximately 300,000 individual apartments. Further, this shortage is growing further with the natural population growth as well.
In Kyrgyz Republic, cost of houses and apartments are so high and individuals do not consider to buy them at such pricing level. Also, even though the people try
to go for apartments with banking facilities/ term loans, interest charged by them are unbearable and very high. According to the some of bankers’ interest rates,
cost of apartment will be doubled at the repayment term end. As such, providing real estate at affordable prices and acceptable interest rates has demanded
and very needed within the country.
IDF CA and the IFC Co-op have developed and are already implementing number of programs for those citizens who would like to avoid existing interest-based
financial institutions using Sharia-compliant investment opportunities.
Within the framework of the IFC-Real Estate project, it has been planned to sell around 7,500 apartments from secondary market till 2030 starting from coming
years. Also, it has been planned to grant 10 to 25 repayment period within the Islamic financing core principals for such buyers. As planned, conditions for
granting loans will be as follows;

Entry fee 0
Initial payment Starting from 10 percent
Membership fee 0
Property/ Housing value Up to 50,000 USD
Interest rate 0 percent
Repayment term Up to 120 months/ 10 years
Grace period Up to 12 months
Collateral Purchased real estate
Figure 3: Segment 01- payment structure

19
7.1.2 Segment 02: 30 social towns with 500 residential buildings in 9 regions to cover 15,000 houses
in total.
The project will also cover 15,000 houses with residential buildings in 30 social towns expecting to offer housing facilities for around
60,000 citizens, that is 15,000 families. Any member of the IFC Cooperative can join this project and build a house in a new residential
complex-town, consisting of 500 households with small land plots (4 acres each) and with a developed modern infrastructure.
Each apartment will be a two-story house with all amenities with a total area of 100 square meter living room, kitchen, boiler room, two
dressing rooms, access to a beautiful terrace where you can relax in warm weather, compact bedrooms, an office, bathrooms. The area
of the adjacent plot is 4 acres. The approximate cost of such a house for a co-operative member will be around 40,000 USD, which is
30 percent 35 percent lower than the cost of a similar house in the local market. Further, in each social town, which made of 500
apartments, collective engineering networks, the Internet, autonomous power supply (solar panels and additional generators), a mosque,
shops, a kindergarten, a school, a hospital and other objects of developed social infrastructure are provided. A social town which
consists all the above features will follow following structural plan;

20
 Figure 4: Segment 02- project design view

Further, in accordance with the social town concept, it has been planned to abolish payment by residents for utilities, as well as to
introduce free school, preschool, education and health care. Further an important feature of social town will be availability of jobs for
residents within the territory, as there will be lot of startups and business projects included in the IDF CA investment pool. 3D design of
general view of a social town will be as follows;

21
Figure 5: Segment 02- Project design view 02.

22
Layout plan of an individual residential in a social town will be as follows;

23
 Figure 6: Segment 02- Layout plan

As planned, conditions for granting loans will be as follows;

Entry fee 0
Initial payment Starting from 10 percent
Membership fee 0
Property/ Housing value Up to 35,000 USD
Interest rate 0 percent
Repayment term From 120 to 300 months/ 10 - 25 years
Grace period Up to 18 months
Waiting time in que From 02 to 12 months
Figure 7: Segment 02- payment structure

7.1.3 Segment 03: 100 small and medium size businesses near the above social towns.
In Kyrgyzstan, there are many small and medium size businesses trying to come into the operation, however such investments are getting
unattractive for such investors due to the lack of financial facilities and interest rates charged by the bankers.
Based on the principles of Mudaraba of Islamic financing, the project will be able to facilitate such investors in attractive and effective
investment conditions which will be extremely positively affect to the entrepreneurs of Kyrgyz Republic, as per the sociological and
marketing research conducted by IFC in October-December 2021 in the regions of Kyrgyzstan. The areas of activities in concern through
the project will be as follows;
- processing of agricultural products, production and export of processed and organic fresh apricots and dried apricots according
to HACCP standards, production of natural juices, in Batken region
- Meat processing, fish farming, processing of berries and fruits, tourism industry in Issyk-Kul region
- Production of food, clothing, agricultural processing in Osh region
24
 - horticulture, cultivation and processing of vegetables and nuts in Jalal-Abad region.
- Meat processing, sheep breeding, wool processing, dairy production in Naryn region.
- Meat and dairy and bean production in Talas region.
- Construction of mini hydropower plants in selected regions.
Having small size businesses around the social towns will have two main goals,
- Obtaining funds for the expansion of entrepreneurial projects around social towns, as well as the development of those
community.
- Receive distributed profits to IDF and IFC for the reinvestment in own projects.

7.1.4 Segment 04: 375 modern residential 4-storey buildings with 20 apartments.
The IFC-Low-rise buildings project is designed for the construction of housing stock mainly in the cities of Bishkek, Osh, Jalal-Abad,
Karakol. The project has planned to construct 375 houses within four to five years’ time. Specification of the houses is as flows;
Segment: economy class housing.
Building area of 1 house - 350 m2
Construction area of 1 house 350 m2 * 5 = 1750 m2.
Of these, 1050m2 are common areas (elevator shafts, stairwells, flights of stairs, entrance group, driveways in the underground parking,
etc.).
Parking spaces in the underground parking - 20.
The cost of building a house is $612,500
The term for the construction of a complex of 20 such houses (one UK) is only 6-7 months.
General view of the house will be as follows;

25
Figure 8: Modern 04 story residentials 3D view

26
Typical floor plan in a 4-story building will be as follows

Figure 9: Segment 04- floor plan

27
Typical floor plan in a 4-story building will be as follows;

28
As planned, conditions for granting loans will be as follows;

Figure 10: Segment 04- payment structure

Figure 11: 3D view of proposed houses and apartments

Entry fee 0
Initial payment Starting from 10 percent
Membership fee 0
Property/ Housing value Up to 55,000 USD
Interest rate 0 percent
Repayment term From 120 to 300 months/ 10 - 25 years
Grace period Up to 18 months
Waiting time in que From 06 to 12 months
Collateral Purchased real estate

29
7.2 High level overview for the business strategies
Core business strategies of the company should be focus on how to enter into the market as a new player and how to sustain in the
market as a profitable venture. While focusing on company’s core competencies, competitive advantages, it is also vital to focus on some
marketing strategies like 4Ps and 4Cs when design company strategical market approach. Accordingly, 4Ps, from the company’s point of
view and 4Cs from the customer point of view has been discussed in detail as a reference for the management in their strategy
development process.

30
 4Ps (From company’s point of view) 4Cs (From customer point of view)
Concept Detail discussion Concept Detail discussion
Product T h i s i n c l u d e s c o m p a n y C u s t o m e r customers come to the market expecting a solution for their
approach on variety, quality, solution problems. Thus, product offered by the company should be
design, features, brand name, capable to address possible problems of them. Specially, the
packaging, services. project is focusing on providing housing facilities for citizens in
Kyrgyz Republic, at affordable process, where there is a
shortage in houses and lack of affordable financial facilities to
such citizens. Specially, the project is aiming to facilitate for
Muslim crowd within the country, through Islamic financial
principals.
E.g.
1. Being a country with middle level revenue generating
population, pricing of houses should be affordable for their
purchasing power.
2. As there is no Islamic financing practice currently, for real
estate industry and as the interest rates charged by the
finance companies are very high, financial facilities provided
by the project should address both such issues to the
targeted community.
3. Considering the capacity of the community, the project should
have capacity to grant decent repayment terms for the
buyers.

31
 Price list price, discounts, allowance, Cost
payment period, credit terms
Customers want to know the total cost of acquiring, using and
disposing of a product. Specially since the project is focusing on
economical housing project for crowd with comparatively less
purchasing power and unexpected deviation of cost can have a
negative impact to their buying power. Accordingly, this cost
should be effective or value for money should be higher than
other competitive products available in the market. This will not
come only being the lowest price provider in the market, rather
company should focus on using latest designs, infrastructure,
convenience, accessibility of the people.

Place c h a n n e l s , c o v e r a g e , Convenience The buying design of a house will be long-term decision for
assortments, locations, buyers and they will count many factors before making such a
inventory, transpor tation, decision. That may include, accessibility to basic needs,
logistics convenience get transport and mobility, health/ education/
supermarket facilities available nearby and convenience to
reach their offices and so on. Accordingly, location selected for
the project should be attractive for possible buyers in all these
aspects to make their buying decision of the real estate
properties provided by the project.

Promotion advertising, personal selling, Communication Customers want two-way communication with the companies that
sales promotion, public make the product. That is, without only focusing on
relations advertisements, it is vital to have continuous communication with
community, who can convert into the future buyers of the project.
Specially, design, interiors and feature should be aligned to the
local needs of each region.

Figure 12: Market strategies

32
7.3 High level overview for the marketing plan
The company must have a well-defined and monitored marketing plan, including pre-opening marketing campaign as well as continuous
spending on marketing, to reach its expected revenue via higher attraction of visitors for the location. Depict below is a high-level
overview for the such marketing strategy.

Figure 13: Marketing plan

8.0 Financial overview

8.1 Budgeted expenses analysis for 2022- 2030 periods.
Budget item Cost ($) Quantity Sum ($) Contribution of IGA contribution Investition ($)
IDF CA and IFC ($)
($)
Buying real estate in 40,000 7,500 300,000,000 3,000,000 - 297,000,000
installments (on the secondary
market)

Construction of new 4-storey 612,500 375 230,000,000 3,000,000 - 227,000,000

residential buildings

Land plots for the construction 150,000 2,000 300,000,000 - 300,000,000 -

of social towns

Communications, water supply, 300,000 30 9,000,000 - 9,000,000 -

electricity supply, etc.,

33
 Construction of social 33,000 15,000 495,000,000 6,000,000 - 489,000,000
residential buildings (cottages
in 30 social towns)

Construction of social and 600,000 100 60,000,000 6,000,000 10,000,000 44,000,000

administrative facilities

Creation of business objects 1,000,000 100 100,000,000 10,000,000 - 90,000,000

and productions

Administrative expenses 2,000,000 30 60,000,000 60,000,000 - -

(management)
Total 1,554,000,000 88,000,000 319,000,000 1,147,000,000

Figure 14: budgeted expenses analysis

8.2 Summary of financial results

8.2.1 Forecasted income statement
Option 1

Year 01- 04 Year 05 Year 06 Year 07 Year 08

Revenue - 623,625,000 390,050,000 311,812,500 233,575,000
Direct expenses - (502,675,000) (314,325,000) (251,337,500) (188,350,000)
Gross profit - 120,950,000 75,725,000 60,475,000 45,225,000

(-) Operating expenses

34
 Administration expenses (12,000,000) (3,000,000) (3,000,000) (3,000,000) (3,000,000)
Marketing expenses (18,000,000) (4,500,000) (4,500,000) (4,500,000) (4,500,000)
Depreciation/ amortization (19,720,000) (4,930,000) (4,930,000) (4,930,000) (4,930,000)
Operational Profit (49,720,000) 108,520,000 63,295,000 48,045,000 32,795,000

Finance expenses (149,110,000) (22,940,000) (11,470,000) - -

Profit before taxes (198,830,000) 85,580,000 51,825,000 48,045,000 32,795,000

Income tax expenses - - - - -
Net profit for the period (198,830,000) 85,580,000 51,825,000 48,045,000 32,795,000

Gross profit % - 19% 19% 19% 19%

Net profit % - 14% 13% 15% 14%

ROCE -25% 15% 15% 12% 8%

Figure 15: Forecasted income statement

35
Option 2

Year 01- 04 Year 05 Year 06 Year 07 Year 08

Revenue - 276,750,000 172,980,000 138,375,000 103,770,000
Direct expenses - (612,375,000) (314,625,000) (128,523,000) 20,352,000
Gross profit - (335,625,000) (141,645,000) 9,852,000 124,122,000

Administration expenses (12,000,000) (3,000,000) (3,000,000) (3,000,000) (3,000,000)

Marketing expenses (18,000,000) (4,500,000) (4,500,000) (4,500,000) (4,500,000)
Depreciation and amortization (19,720,000) (4,930,000) (4,930,000) (4,930,000) (4,930,000)
Operational profit (49,720,000) (348,055,000) (154,075,000) (2,578,000) 111,692,000

Finance expenses (102,746,250) (13,699,500) (6,849,750) - -

Profit before taxes (152,466,250) (361,754,500) (160,924,750) (2,578,000) 111,692,000

Income tax expenses
Net profit for the period (152,466,250) (361,754,500) (160,924,750) (2,578,000) 111,692,000

GP -121% -82% 7% 120%

NP -131% -93% -2% 108%

ROCE -26% -565% 60% 1% -70%

36
8.2.2 Forecasted financial position
Option 1

Year 01 Year 02 Year 03 Year 04 Year 05

Non-current assets
Property plant and equipment 49,400,000 44,500,000 39,600,000 34,700,000 29,800,000
Pre-opening expenses 60,000 50,000 40,000 30,000 20,000
Office and other equipment 20,000 100,000 80,000 60,000 40,000
Total non-current assets 49,480,000 44,650,000 39,720,000 34,790,000 29,860,000

Current-assets
Cash and cash equivalents (547,437,500) (241,102,500) (156,772,500) 147,540,000 373,615,000
Properties available for sale 1,256,687,500 754,012,500 439,687,500 188,350,000 -
Total current-assets 709,250,000 512,910,000 282,915,000 335,890,000 373,615,000

Total assets 758,730,000 557,560,000 322,635,000 360,680,000 403,475,000

Equity and liabilities

Share capital 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000
Retained earnings (221,770,000) (136,190,000) (84,365,000) (36,320,000) (3,525,000)
Total equity 185,230,000 270,810,000 322,635,000 370,680,000 403,475,000

37
 Non- current-liabilities
Borrowings 573,500,000 286,750,000 - - -
Total non-current-liabilities 573,500,000 286,750,000 - - -

Total liabilities 785,730,000 557,560,000 322,635,000 370,680,000 403,475,000

Figure 16: Forecasted financial position

Option 2

Year 01- 04 Year 05 Year 06 Year 07 Year 08

Non- current assets
Building and structures 49,400,000 44,500,000 39,600,000 34,700,000 29,800,000
Pre-opening expenses 60,000 50,000 40,000 30,000 20,000
Office and other equipment 20,000 100,000 80,000 60,000 40,000
49,480,000 44,650,000 39,720,000 34,790,000 29,860,000

Current assets
Cash and cash equivalents 397,191,250 166,773,000 25,636,500 176,863,500 405,133,500
Properties available for sale 612,375,000 314,625,000 128,523,000 (20,352,000) (132,000,000)
38
 1,009,566,250 481,398,000 154,159,500 156,511,500 273,133,500

Total assets 1,059,046,250 526,048,000 193,879,500 191,301,500 302,993,500

Equity
Share capital 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000
Retained earnings (152,466,250) (514,220,750) (675,145,500) (677,723,500) (566,031,500)
254,533,750 (107,220,750) (268,145,500) (270,723,500) (159,031,500)

Non-current- liabilities
Long term borrowings 342,487,500 171,243,750 - - -
342,487,500 171,243,750 - - -

Total liabilities 597,021,250 64,023,000 (268,145,500) (270,723,500) (159,031,500)

462,025,000 462,025,000 462,025,000 462,025,000 462,025,000

gearing 57% 267% 0% 0% 0%

8.2.3 Forecasted cashflow

Option 1

Year 01 Year 02 Year 03 Year 04 Year 05

39
Operating activities
Profit before taxes (221,770,000) 85,580,000 51,825,000 48,045,000 32,795,000
Adjustment for;
+ Depreciation/ amortization 19,720,000 4,930,000 4,930,000 4,930,000 4,930,000
+ Interest 172,050,000 22,940,000 11,470,000 - -

Working capital adjustments

Decrease in salable properties (1,256,687,500) 502,675,000 314,325,000 251,337,500 188,350,000

Net operating cashflow (1,286,687,500) 616,125,000 382,550,000 304,312,500 226,075,000

Investing activities
Contribution of IDF CA and IFC 88,000,000 - - - -
Contribution of IGA 319,000,000 - - - -
Investment in assets and expenses (69,200,000) (100,000) - - -
Net investment activities 337,800,000 (100,000) - - -

Financing activities
Borrowing obtained 1,147,000,000 - - - -
Repayments (722,610,000) (309,690,000) (298,220,000) - -
Net financing activities 401,450,000 (309,690,000) (298,220,000) - -

40
 Net annual cash flow (547,437,500) 306,335,000 84,330,000 304,312,500 226,075,000
Opening balance - (547,437,500) (241,102,500) (156,772,500) 147,540,000

Closing balance (547,437,500) (241,102,500) (156,772,500) 147,540,000 373,615,000

Figure 17: Forecasted cashflow statement

Option 2

Year 01- 04 Year 05 Year 06 Year 07 Year 08

Cash flow forecast
Operating activities
Net profit (152,466,250) (361,754,500) (160,924,750) (2,578,000) 111,692,000
Adjustment for,
+ Depreciation chargers 19,720,000 4,930,000 4,930,000 4,930,000 4,930,000
+ Interest paid 102,746,250 13,699,500 6,849,750 - -

Working capital movements

Inventory (612,375,000) 297,750,000 186,102,000 148,875,000 111,648,000

Net operating activities (642,375,000) (45,375,000) 36,957,000 151,227,000 228,270,000

Investing activities
Contribution of IDF CA and IFC 88,000,000 - - - -

41
IGA contribution 319,000,000 - - - -
Investment in assets and expenses (69,200,000) (100,000) - - -
Net investing activities 337,800,000 (100,000) - - -

Financing activities
Borrowing obtained 1,147,000,000 - - - -
Repayments (445,233,750) (184,943,250) (178,093,500) - -
Net financing activities 701,766,250 (184,943,250) (178,093,500) - -

Net cashflow 397,191,250 (230,418,250) (141,136,500) 151,227,000 228,270,000

Opening balance - 397,191,250 166,773,000 25,636,500 176,863,500
Closing balance 397,191,250 166,773,000 25,636,500 176,863,500 405,133,500

3. Summarized cash flow and ratio analysis

3.1. Summarized cash flow analysis
Option 1

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Cash in-flows
Contribution of IDF CA and IFC 88 - - - - - - -
IGA contribution 319 - - - - - - -
Proceeds from loan 1,147 - - - - - - -
42
 Sale of properties - - - - 624 390 312 234

Cash out-flows
Construction of properties (390) (340) (270) (147) - - - -
Construction of properties - - - (110) - - - -
Repayment of loans (46) (46) (333) (321) (310) (298) - -
Investment in PPE
Communications, water supply, (9) - - - - - - -
electricity supply, etc.,
Construction of social and (60) - - - - - - -
administrative facilities
Pre- opening expenses (0) - - - - - - -
Office and other equipment (0) - - - (0) - - -
Administration (3) (3) (3) (3) (3) (3) (3) (3)
Marketing (5) (5) (5) (5) (5) (5) (5) (5)

Net annual cash flows 1,041 (393) (610) (585) 306 84 304 226

Net accumulated cash flow analysis 1,041 648 37 (547) (241) (156) 147 373
Figure 18: Summarized cash flow analysis

43
Option 2
Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

In-flows

Sale of properties
276,750,000 172,980,000 138,375,000 103,770,000

Proceeds from loan

684,975,000

Contribution of IDF CA and IFC

88,000,000

IGA contribution
319,000,000

Out-flows

Construction of properties
(390,000,000) (340,000,000) (270,000,000) (147,000,000)

Construction of properties
- - - 534,625,000

Repayment of loans (184,943,250)

(27,399,000) (27,399,000) (198,642,750) (191,793,000) (178,093,500)

Investment in PPE

Communications, water supply, electricity

supply, etc., (9,000,000)

Construction of social and administrative

facilities (60,000,000)

Pre- opening expenses

(100,000)

Office and other equipment

(100,000) (100,000)

44
 Administration
(3,000,000) (3,000,000) (3,000,000) (3,000,000) - - - -

Marketing
(4,500,000) (4,500,000) (4,500,000) (4,500,000) - - - -

Net cash flows

597,876,000 (374,899,000) (476,142,750) 188,332,000 91,706,750 (5,113,500) 138,375,000 103,770,000

8.3.2 Payback period analysis

Payback period indicates the period, that require to turn the net project cash flow into positive cash position. Accordingly, the project
cash flow will turn into positive after six year and six months after the project implementation. That is two and half year after starting
the sales proceeds.
Option 1

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Net accumulated cash flow analysis 1,041 648 37 (547) (241) (156) 147 373
Figure 19: Payback period analysis

Option 2

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Net accumulated cash flow analysis 597 229 (253) (64) 26 21 160 263

45
3. IRR (Internal rate of return) analysis
IRR has been calculated considering the operational cash flows, before the proceeds from borrowing and settlement of the same.
Accordingly, the IRR of the project will be 4.68 percent.
Option 1

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Net operational cashflows (398) (348) (278) (264) 616 383 304 226
IRR 4.68%
Figure 20: IRR calculation

Option 2

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Net operational cashflows (397) (347) (277) 380 276 172 138 103
IRR 1.37%

8.3.4 NPV (Net present value) calculation

NPV has been calculated considering the present value of total cashflows at 4 percent, which is the borrowing rate of the project.
Accordingly, NPV of the project during the eight will be 332mn USD as detailed below.
Option 1

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Net annual cash flows 1,041 (393) (610) (585) 306 84 304 226
NPV of annual cashflows at 4% 1,001 (364) (542) (500) 252 67 231 165
NPV of the project 310

46
Figure 21: NPV calculation

Option 2

Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08

Net annual cash flows 597 (374) (476) 188 91 5 138 103
NPV of annual cashflows at 4% 574 (346) (423) 160 75 4 105 75
NPV of the project 218

47
4. Final Summary
Option 1 Option 2

NPV 309,778,159 NPV 218,275,722

IRR 4.68% IRR 1.37%

MARR 16% MARR 25%

ROI 83% ROI 54%

Recommendation Feasible Recommendation Feasible

48
VMO Management Ltd

24/july/2022

49