The provision of a three-year senior loan of up to US$ 40 million equivalent to Joint Stock Commercial Bank with Foreign Capital Hamkorbank (Hamkorbank). The loan will be available in three tranches in the local currency; the second and third tranches are uncommitted. The proceeds of the loan will be on-lent to eligible MSME Sub-borrowers in line with the eligibility criteria
The project contributes to the objectives of the Financial Intermediary Framework (FIF). FIF 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 banks 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.
ETI score: 60
The project will contribute to the Competitive and Resilient Transition Impact qualities. The project will support Hamkorbanks's lending to private MSMEs in Uzbekistan by a multiple of the EBRD's funding with the focus on regional outreach and attraction of new MSME clients, while maintaining sound underwriting standards.
Hamkorbank is the largest private bank in Uzbekistan with strong expertise in MSME lending, it is ranked eighth by assets (3 per cent market share). The bank is majority-owned by Mr. Ikram Ibragimov, a local businessman. FMO, IFC and responsAbility are among shareholders.
EBRD Finance Summary
€ 32.9 million equivalent.
Total Project Cost
Additionality will be achieved through a combination of: (i) much-needed medium-term financing; and (ii) risk mitigation.
Environmental and Social Summary
Categorised FI (ESP 2019). Hamkorbank is an existing Client of the Bank. The ESMS is considered generally aligned with performance requirement (PR) 9 and will reach full compliance with updates to refer to the ESP 2019 including the updated exclusion list and referral list. The finance is anticipated to be used for SMEs finance for which the overall environmental and social risk exposure is generally considered low to medium and for which the ESMS is considered adequate. Hamkorbank will need to continue to comply with PR2 and 4, the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans and continue to submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
85 Bobur Avenue Andijan region 170119 Republic of Uzbekistan
PSD last updated
15 Jun 2021
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Independent Project Accountability Mechanism (IPAM)
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