The provision of a three-year Senior SME Loan of up to US$ 40 million ("Loan") to Joint Stock Commercial Bank UzPromStroyBank (UzPSB). The proceeds will be used for on-lending to qualified private small and medium sized enterprises ("SME") in line with the Policy Statement.
The Loan will enable UzPSB to diversify its portfolio, which is currently skewed toward large corporate clients, helping it to achieve a more balanced structure. It will also contribute to the expansion of the bank's SME client segment, including via reaching new clients and regions outside of Tashkent. Moreover, the Loan will further competition in the real economy by increasing availability of financing to the Uzbekistan's SMEs and, thus, supporting lending continuation to one of the segments most impacted by the COVID-19 crisis.
ETI score: 60
The Loan seeks to: (i) foster SME competitiveness by increasing availability of financing; and (ii) contribute to the competitiveness of UzPSB by helping improve innovation in strategy, products, processes and marketing related to SME lending. By ensuring that UzPSB has adequate underwriting and risk management practices in place, it also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.
UzPSB is the oldest bank in the country, ranked second by assets (13 per cent market share) out of 30, as of YE2019. The bank is majority-owned by the state via the Uzbekistan Fund for Reconstruction and Development ("UFRD") and the Ministry of Finance. It follows a universal banking model, servicing more than 1 million clients, including 56 thousand corporates, via its 45 branches and 170 outlets across the country.
EBRD Finance Summary
Total Project Cost
Additionality stems from the inadequate financing options for local SMEs, particularly in light of the COVID-19 pandemic, with EBRD financing intended to bridge the resulting funding gap. Limited in-country presence of private investors or IFIs, which provide both access to financing and know-how to local players, also contributes to additionality..
Environmental and Social Summary
Categorised FI (ESP 2014). UzPSB is an existing client with a previous TFP line. Due to the nature of this transaction, Environmental and Social Due Diligence (ESDD) included a further review of the Borrower's Environmental and Social Management System, which is currently being updated with input from the IFC. The ESMS is considered generally aligned with Performance Requirement (PR) 9 and will reach full compliance with updates to refer to the EBRD specifics including the ESP 2019, exclusion and referral lists. In addition the Borrower will need to comply with PR2 and 4 and the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans. 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
+998 71 200 43 43
3, Shakhrisabz street, Tashkent city, 100000, Uzbekistan
PSD last updated
21 Apr 2020
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