FIF - Uzbek Leasing SME Senior Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 49309

Status Repaying

Location

Uzbekistan

Business Sector

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 49309

Status Repaying

Location

Uzbekistan

Business Sector

Notice Type

Private

Environmental Category

Approval Date

25 Apr 2019

Disclosure date

11 Oct 2017

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Uzbek

Project Description

Provision of a senior loan of up to USD 10m in favour of Uzbek Leasing International A.O. (the "Company" or "UL"), an Uzbek joint stock company. The loan will consist of two tranches of USD 3m each, and a third tranche of USD 4m. The 2nd and the 3rd tranches will be uncommitted.

The loan will be used by UL to grant finance leases for commercial vehicles, trucks and trailers and equipment to small and medium-sized enterprises ("SMEs") in Uzbekistan.

Project Objectives

The SME loan will enable UL to increase the availability of medium-term funding for small and medium sized enterprises in Uzbekistan which remain underserved. The Project will also be contributing to furthering competition in the real economy by increasing availability of financing to Uzbek SMEs.

Transition Impact

The project contributes to the objectives of the Financial Intermediary Framework and seeks to foster competitiveness by increasing the availability of financing to private SMEs. The project also aims to strengthen UL's internal capacity to service the SME segment through tailored TC that will focus on strengthening UL's risk management function, through set-up of a risk management department and training of its staff, training of underwriting and credit staff, and development of marketing strategy following the FX unification. This will encourage sustainable lending practises, supporting the resilience of the financial system.

Client Information

UZBEK LEASING INTERNATIONAL AO

UL was founded in 1996. The Company's shareholders are the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU)- 41.6%, Uzbek-Oman Investment Company ("UzOman"), a joint venture between the sovereign wealth funds of Uzbekistan and Oman created to facilitate Omani investments in Uzbekistan - 38.7%, and Malayan Banking Berhad (Maybank) - 19.7%.

With its headquarters in Tashkent and representative offices in 7 regions, UL specialises in providing a wide spectrum of leasing services (equipment and vehicles) to local SMEs. Total assets comprised USD 45.2m, net profit - USD 7.4m at YE 2016.

EBRD Finance Summary

USD 10,000,000.00

Total Project Cost

USD 10,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014). UL will be required to comply with the EBRD's Performance Requirements (PR) 2 (Labour and Working Conditions) PR4 (Occupational Health and Safety) and PR 9 (Financial Intermediaries) which includes implementing the EBRD's Environmental and Social Procedures for Leasing Activities, adherence to the EBRD's Environmental and Social Exclusion list and submission of Annual Environmental and Social Reports to the Bank on its compliance with the E&S Procedures and the PRs.

Technical Cooperation

UL will benefit from the Technical Cooperation ("TC") under the "Uzbekistan: Financial Intermediaries Capacity Building TC Programme." UL will also benefit from TC measures under the "Regional Small Business Programme for Central Asia."

Company Contact Information

Mr. Zafar Mustafaev
uzlease@sarkor.uz
(+998 71) 140-77-44
(+998 71) 140-37-74
Page 3
www.uzbekleasing.com
1, Beshyogoch Street Tashkent, 100066 Republic of Uzbekistan

Transition impact

ETI Score:60

PSD last updated

06 Sep 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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