This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
The provision of a senior unsecured loan of up to US$ 50 million to be provided in synthetic Uzbek Som, US$ or € under the Resilience Framework in favour of Asaka bank. The loan will be comprised of two tranches of US$ 20 million (Tranche 1) and US$ 30 million (Tranche 2). The proceeds of the loan will be channelled by Asaka bank to private small and medium-sized enterprises (SMEs) in Uzbekistan.
The proposed project will allow Asaka bank to provide funding to eligible sub-borrowers thus improving resilience of the financial sector. Lending to the SME segment will support Asaka bank's strategic expansion of its SME segment within the wider aim to help commercialise the bank's business model.
ETI score: 80
The project will contribute to the Resilient quality by helping Asaka bank to maintain sound financial profile amid the pressure due to the COVID-19 pandemic. The project will reinforce Asaka bank's lending capacity and help the bank to continue lending to SMEs.
The project will support the Competitive quality by helping Asaka bank to sustain SME portfolio growth at least in line with the market. The proposed project will facilitate provision of much-needed finance to private SMEs, thus helping to soften the economic consequences of the COVID-19 crisis.
ASAKA JOINT-STOCK COMMERCIAL BANK
Asaka bank is one of the largest commercial banks in Uzbekistan, ranked third by assets out of 30 banks as of March 2020. The bank is majority-owned by the state via the Fund for Reconstruction and Development of the Republic of Uzbekistan (87.77 per cent) and the Ministry of Finance of the Republic of Uzbekistan (9.38 per cent). Currently, Asaka bank is undergoing though a transformation process, which envisages the commercialisation of the bank's business model and its eventual privatisation.
EBRD Finance Summary
Total Project Cost
COVID-19 crisis response: the EBRD financing effectively bridges a liquidity gap in financing SMEs due to adverse market conditions amid the COVID-19 pandemic.
Environmental and Social Summary
Categorised FI (ESP 2019). Asaka Bank is an existing client with a previous TFP line. Environmental and Social Due Diligence identified a number of gaps in compliance with PR9, PR4 and PR2 and actions to close these have been included within an Environmental and Social Management Plan, which has been agreed with the Client and will be included in the financing agreement. Asaka Bank will need to comply with the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans and the ESP 2019 referral and exclusion lists. The Borrower will be required to submit annual environmental and social reports to the Bank. The funding will be used for private Small and Medium-sized Enterprises (SMEs) as per the terms of the Policy Statement for which the overall environmental and social risk exposure is generally considered low.
Technical Cooperation and Grant Financing
Company Contact Information
67 Nukus street, Mirabad district, Tashkent, Uzbekistan.
PSD last updated
28 Sep 2020
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Independent Project Accountability Mechanism (IPAM)
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