FIF - Ipoteka Bank MSME Senior Loan III



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

02 Sep 2020



PSD disclosed:

05 Oct 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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$30 million under the Financial Intermediaries Framework in favour of JSCMB Ipoteka-bank ("IB").

Project Objectives

The EBRD finance will provide support to IB's MSME clients in an environment of large- scale disruption caused by Covid-19. The proceeds of the loan will be on-lent by IB in line with the eligibility criteria defined in respective Policy Statements. 

Transition Impact

ETI score: 60

The project seeks to (i) foster SME competitiveness by increasing availability of financing and (ii) contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes and marketing related to SME lending. By ensuring that financial institutions have adequate underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.

Client Information


Ipoteka Bank is one of the leading financial institutions in Uzbekistan, ranking 4th by total assets with market share of around 8.7 per cent at YE2019. The bank provides the whole range of commercial banking services via its wide network of 39 branches and over 100 minibanks covering the whole country. IB has multiple shareholder structure with the largest stakes held by Uzbekistan Fund for Reconstruction and Development and Uzbekistan's Ministry of Finance.

EBRD Finance Summary

USD 30,000,000.00

Total Project Cost

USD 30,000,000.00


Additionality derives from a combination of:

COVID-19 crisis response: the EBRD financing effectively bridges a funding gap due to adverse market conditions, e.g. the Covid-19 crisis, which is yet more profound for mid- and longer-term funding. 

Financing structure: the EBRD offers financing on market driven terms and conditions that currently are not available from other commercial sources.

A Policy, sector, institutional, or regulatory change: the EBRD's involvement, along with all the intangible benefits that it carries, is expected to help facilitate IB's and, more generally, the sector's, gradual transition toward a more competitive and commercial business model, as envisioned in Uzbekistan's banking sector strategy approved in May 2020.

Environmental and Social Summary

Categorised FI (ESP 2019). IB is an existing client with previous TFP and SME lines. Environmental and Social Due Diligence (ESDD) included a review of an updated due diligence questionnaire and the Borrower's current Environmental and Social Management System (ESMS), which is currently undergoing an update supported by the IFC. The ESMS is considered generally aligned with performance requirement (PR 9) and will reach full compliance with the EBRD ESP 2019, once IB has included the updated exclusion list and referral list, and adopted into its ESMS the screening of E&S risks to align with the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans. The Borrower will need to continue to comply with PR2 and 4. Specifically in relation to PR2 the Borrower has implemented recent collective redundancies due to a re-structuring and operational transformation programme which is being supported by the IFC.  A review of this process is being undertaken to ensure the relevant requirements of PR2 are properly accounted for. The Borrower will continue to be required to submit annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing


Company Contact Information

Rustam Pulatov
+998 (78) 147-47-13
+998 (78) 150-98-25
JSCMB "Ipoteka-bank" Shakhrisabz st.30 100000 Tashkent, Republic of Uzbekistan

PSD last updated

15 Oct 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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