FIF - NBU SME Senior Loan

Location:

Uzbekistan

Project number:

49318

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

18 Oct 2017

Status:

Disbursing

PSD disclosed:

26 Sep 2017

Translated version of this PSD: Russian

Project Description

The Project consists of a financing package of up to US$ 100 million in favour of the National Bank for Foreign Economic Activity of the Republic of Uzbekistan ("NBU") to be split between a senior micro, small and medium-sized enterprises ("MSME") loan of up to US$ 70 million with the proceeds to be on-lent to eligible sub-borrowers, and a trade facilitation programme ("TFP") limit of up to US$ 30 million for trade finance activities.

Project Objectives

The MSME loan will enable NBU to increase the availability of medium-term funding for private MSMEs in Uzbekistan, which remain underserved. The Project will also be contributing to furthering competition in the real economy by increasing availability of financing to Uzbek MSMEs including in the rural areas of Uzbekistan.

The TFP limit will enable NBU to support import and export transactions, further develop its correspondent banking services and strengthen its trade finance product range. It will allow the bank to join the EBRD TFP network of over 800 Confirming Banks and to receive advanced trade finance
trainings. Moreover, it will help the bank to establish stronger trade links with the EBRD's countries of operations and promote intra-regional transactions.

Transition Impact

The Project seeks to foster competitiveness by increasing the availability of financing to private MSMEs. Through tailored technical assistance for the strengthening of MSME lending capacity, including in the areas of underwriting and risk management, the Project seeks to encourage sustainable lending practises, supporting the resilience of the financial system.

In addition, by providing the TFP limit the Project seeks to foster further trade integration and resilience for the EBRD's countries of operation through the extension of trade finance guarantees or credit lines to cover the political and commercial payment risk of international trade transactions undertaken by partnering financial institutions.

Client Information

NATIONAL BANK FOR FOREIGN ECONOMIC ACTIVITY OF THE REPUBLIC OF UZBEKISTAN

NBU is the largest credit and investment institution in the country operating via 93 branches and 14 departments in Uzbekistan. The bank's total assets stood at US$ 6.3 billion as of year-end 2016, accounting for 25 per cent of the system's total assets. The bank's primary mission is to service foreign trade operations, carry out lending to strategically important industries, increase the country's export potential and attract foreign investments. At the same time, NBU plays an inportant role in providing support to private MSMEs across all regions of Uzbekistan. NBU also offers remote banking, credits, factoring as well as project financing services. The ultimate shareholder and controlling party of the bank is the Government of Uzbekistan.

EBRD Finance Summary

USD 70,000,000.00

Up to US$ 100 million in total financing, of which:

(i) US$ 70 million for MSME loan, and
(ii) US$ 30 million limit for TFP.

Total Project Cost

USD 70,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014); NBU will be required to comply with the EBRD's Performance Requirement (PR) 2 (Labour and Working conditions which includes compliance with the International Labour Organisation (ILO) Standards). NBU must also comply with PR 4 (Occupational Health and Safety) and PR 9 which includes implementing the EBRD's Environmental and Social Procedures for SME and Micro loans, adherence to the EBRD's Environmental and Social Exclusion list and submission of Annual Environmental and Social Reports to the Bank on its compliance with the E&S Procedures and the PRs.

Technical Cooperation

The bank will benefit from the Technical Cooperation ("TC") under the "Uzbekistan: Financial Intermediaries Capacity Building TC Programme." The bank will also benefit from TC measures
under the "Regional Small Business Programme for Central Asia" and the TFP TC framework.

Company Contact Information

General Enquiries
+998 71 148 0010
www.nbu.uz
101, Amir Temur Street, Tashkent, Uzbekistan, 100084

Business opportunities

For business opportunities or procurement, contact the client company.

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