The provision of a senior secured loan of up to US$ 6.0 million (€ 5.4 million) to Uzbek Leasing International A.O. (the "Company" or "UL"), an Uzbek joint stock company. The second tranche of US$ 3 million will be uncommitted. The loan will be provided in UZS or USD. The loan will be used for financing projects under Central Asian WiB Programme ("WiB Loan").
The proposed WiB loan aims to improve access of women-led MSMEs in Uzbekistan to finance and know-how. UL, an existing EBRD partner will become the first leasing company under the CA WiB Program and will on-lend the proceeds of the WiB Loan to eligible women-led MSMEs.
ETI score: 75
The proposed Loan contributes to the objectives of the CA WiB Programme, supporting the Inclusive and Competitive TI qualities. The loan will support the transition objective of the CA WiB Programme, i.e. promotion of women businesses' access to finance and, more broadly, women's active participation in business, thus alleviating gender inclusion gaps in terms of "access to finance" and "employment and entrepreneurship". At the date of this document, this represents the first sub-operation of the CA WiB to a leasing company in Central Asia.
UZBEK LEASING INTERNATIONAL AO
Uzbek Leasing ("UL") was founded in 1996 as the first specialised leasing company in Uzbekistan. With its headquarters in Tashkent and representative offices in 10 regions, UL specialises in providing a wide spectrum of leasing services (lease of equipment and vehicles) to local SMEs including women-led businesses.
EBRD Finance Summary
Total Project Cost
Financing Structure:The Bank will provide medium-term funding (potentially LCY) which remains scarce to the sector and UL in particular, with dominant share of demand/ short-term deposits in the funding structure.
Knowledge, innovation, and capacity building: The EBRD offers a holistic package that comprises commercial financing blended with concessionality (TC and non-TC funds) that altogether may help alleviate gender gaps in access to finance in the country and enhance the Client's practices. The TC offered to UL will help develop financial products and leasing practices that meet the specific needs of women-led MSMEs and build the internal capacity for their successful roll-out, such as through dedicated training. In parallel, ASB services will help improve access to know-how and to networks for Women SMEs. Besides, the FLRC will provide comfort to the Client by mitigating the risks associated with entering more pronouncedly into a relatively new segment of the market.
Environmental and Social Summary
Categorised FI (2019 ESP). Uzbek Leasing (UL) is an existing client of the Bank and environmental and social due diligence included a review of the annual environmental and social (E&S) report and of the Borrower's current Environmental and Social Management System (ESMS). The E&S performance of UL has been satisfactory to date as evidenced by annual reporting on E&S matters. The 2021 E&S report shows that the Client has a Code of Ethics, HR and gender policies in place. The client has updated the ESMS in line with the EBRD's ESP 2019 including the EBRD's E&S Exclusion List. In the context of the WIB Programme and GEFF Loan, Uzbek Leasing will be required to continue to comply with Performance Requirements 2, 4 and 9, and to apply the EBRD's E&S Risk Management Procedures. UL is required for further improvement on labor management going forward and will also be required to implement the E&S Eligibility Criteria for Renewable Energy Projects as part of the GEFF Loan, as applicable for each sub-project. Uzbek Leasing will continue to provide annual E&S reporting to the Bank on compliance with the applicable PRs and any other E&S matters arising during the year.
Technical Cooperation and Grant Financing
A. Technical Cooperation (TC): the CA WiB TC Programme includes two linked TC components:
(i) tailored capacity-building for partner financial institutions ("PFIs"): a TC Programme of up to USD 8m has been established for capacity building to PFIs and programme support. The TC programme will help PFIs individually develop financial products and lending practices that meet the specific needs of women-led MSMEs and support implementation of the Programme including through training of PFI staff and marketing support, as well as a risk sharing mechanism to stimulate lending to this group on a sustainable basis by addressing identified market failures.
Funding source: Women Entrepreneurs Financing Initiative (We-Fi); Amount/currency: USD 5.0m (first instalment) out of USD 8.0m received to date at the CA WiB TC Programme level (with USD 3.0m second instalment requested); Client contribution: In line with the EBRD Client Contribution Policy (BDS20-119/Rev 1) and guidelines, the client will be required to contribute up to USD 18,000 in parallel in support of the TC. This parallel client contribution can be made in connection with seminars, events and marketing activities and materials which may be used for training and promotion of WiB-related products.
(ii) capacity-building for women-led MSMEs via the Advice for Small Businesses (ASB) team.
Funding source: We-Fi; Amount/currency: USD 4.5m at the CA WiB Programme level
B. Co-investment grants / Concessional Finance (Non-TC)
The project involves a First Loss Risk Cover mechanism of up to 10% of a WiB loan (limited to 70% per a single sub-loan) which translates in FLRC of up to USD 0.175m for the proposed WiB Loan; the first loss risk cover will compensate for credit losses of UL as a result of its participation in the Programme.
Funding source: We-Fi; Amount/currency: USD 0.175m (provided in local currency); Funding status: Confirmed
Company Contact Information
Mr. Zafar Mustafaev
(+998 78) 120-02-02
(+998 71) 140-37-74
Amir Temur Avenue 88-A, Tashkent, 100084, Republic of Uzbekistan
PSD last updated
29 Apr 2022
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Independent Project Accountability Mechanism (IPAM)
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