EBRD and Ipak Yuli Bank to support green lending and Uzbek MSMEs

• EBRD providing US$50 million financing package to Ipak Yuli Bank
• Funds to support MSME development and green lending in Uzbekistan
• Project support by HIPCA concessional co-financing

The European Bank for Reconstruction and Development (EBRD) is extending a financing facility of up to US$ 50 million (€43 million) to Ipak Yuli Bank to support micro, small and medium-sized enterprises (MSMEs) in Uzbekistan, improving access to green finance and stimulating green innovation.

The package consists of two complementary components designed to accelerate Uzbekistan's green transition and strengthen its MSME sector.

An EBRD loan of up to US$15 million (€12.9 million) will be made available under the Bank’s Uzbekistan Green Economy Financing Facility II (GEFF II Uzbekistan) in synthetic Uzbek sum. This will allow Ipak Yuli Bank to expand its energy-efficiency lending to companies and households across the country, who can use the funds to modernise their production, increase their energy efficiency and/or improve their climate resilience. The loan will be supported by concessional co-financing by provided by the High-Impact Partnership on Climate Action (HIPCA).

HIPCA donors include: Austria, Canada, Finland, Germany, the Netherlands, Norway, South Korea, Spain, Switzerland, the TaiwanICDF (International Cooperation and Development Fund), the United Kingdom and the United States of America.

The remaining US$ 35 million (€30.1 million), also provided in the synthetic local currency, will be used to support MSMEs in Uzbekistan, helping to strengthen the backbone of the country's economy and create employment opportunities.

The EBRD has invested more than US$6.5 billion in Uzbekistan to date through 193 projects, with the majority of those funds supporting private entrepreneurship, contributing to the country’s economic development.