The provision of a US$ 15 million (€ 12.7 million) senior loan under the Resilience Framework to Ipak Yuli Bank, one of the largest private banks in Uzbekistan and an active EBRD partner in financing private sector businesses via MSME and GEFF loan facilities, TFP and RSF.
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.
Support from the EBRD through additional funding under the Resilience Framework will facilitate the partner to continue lending, maintain the existing loan portfolio and support the clients with new financing in this difficult environment. The new funding from the EBRD in the current circumstances should also provide additonal comfort to other lenders willing to support the bank.
ETI score: 80
The proposed project under Resilience Framework will contribute to Resilient and Competitive transition qualities by providing long-term financing to the existing partner bank to ensure it continues uninterrupted lending to the MSME segment that faces challenges in access to finance especially in such an unprecedented situation.
IPAK YULI JOINT-STOCK INNOVATION COMMERCIAL BANK
Ipak Yuli Bank is a universal commercial bank, the second largest private bank in Uzbekistan and 12th largest by assets among 31 local banks with a market share of 2 per cent by assets and loans. IYB is an active EBRD partner bank in the area of on-lending to private sector businesses via MSME and GEFF loan facilities, TFP and RSF.
The bank is majority-owned by Uzbek private sector shareholders. Three IFIs jointly hold 29 per cent and the Government of Uzbekistan (through two state-owned enterprises) owns 16 per cent of Ipak Yuli's equity.
EBRD Finance Summary
Senior debt of US$ 15 million available in three tranches. The maturity of the loan will not exceed 3 years from the initial signing. No mobilised financing.
Total Project Cost
Additionality sources: COVID-19 crisis response: the EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis. Additionality Description: Access to funding from IFIs, the only source of wholesale term funding available for Uzbek private banks, has diminished against the backdrop of global COVID-19 pandemic, while the domestic capital market for term funding is at early stage of development. The loan will allow the bank to continue lending to vulnerable SMEs, and meet their financing needs.
Environmental and Social Summary
Categorised FI (ESP 2019). The EBRD Performance requirements have been considered and an ESMS implementation roadmap has been developed. The existing ESMP has been updated for this transaction and aligned with the roadmap. Implementation of the ESMP will ensure that the bank will comply with PR2, 4 and 9 and the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Dilaziz Sultanov
Tel.: (+998-71) 140-6943
PSD last updated
15 Oct 2020
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