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EBRD invests in first Uzbek leasing company
The European Bank for Reconstruction and Development (EBRD) is to provide US$ 5.6 million in financing to the first leasing company in Uzbekistan, Uzbek Leasing International AO (Uzleasing). The new company will provide term financing of machinery, transportation vehicles and office equipment for joint-venture companies and small and medium-sized enterprises.
Isao Kawanishi, the EBRD’s Resident Representative in Uzbekistan, said: “As the local industry in Uzbekistan develops, demand for more flexible financing methods has increased. Small and medium-sized private companies, which are fundamental to a growing economy, will now have access to modern equipment, on a leased basis.”
Chairman of the National Bank of Uzbekistan, Rustam Azimov, said: “By establishing other forms of financing, such as leasing, we can provide more choice to the growing private sector which is looking for better terms and conditions for procuring equipment and services.”
The EBRD’s initial financing consists of a US$ 600,000 equity investment, representing 15 per cent of Uzleasing’s share capital. Uzleasing expects the average lease to be in the range of US$ 50,000 - 200,000 and from two to seven years.
Other partners in the project are sponsors Malayan Banking Berhad (Maybank - 35 per cent), the largest commercial bank in Malaysia, and the Uzbek National Bank for Foreign Economic Activity (35 per cent). The International Finance Corporation is participating on the same basis as the EBRD. All shareholders plan to provide loans of US$ 5 million, for a total initial funding package of US$ 20 million.
Including the financing to Uzbek Leasing International, the EBRD has committed a total of ECU 111.5 million (US$ 164 million) to Uzbekistan.
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