Uzpromstroybank inks $75mn loan agreement with IFC

Uzpromstroybank of Uzbekistan has inked a $75mn convertible loan agreement with the International Finance Corporation (IFC).

“The IFC loan will support the bank's further privatisation process. Financing, denominated in Uzbek soums, will provide the bank with access to long-term financing in local currency, limited in the market due to the COVID-19 pandemic, and will help transform the bank with the possibility of further converting the IFC loan into bank shares,” Uzpromstroybank said in a statement.

Part of the financing for the project will go towards lending to SMEs, while 50% of the loan will be used to finance projects with a positive climate impact.

“IFC welcomes Uzbekistan's determination to attract private investment to the country's financial sector. Our funding is aimed at helping Uzpromstroybank prepare for privatization and become a standard-setting bank for SME lending and green finance. This initiative is in line with IFC's strategy to support green growth by stimulating investment and identifying opportunities to help Uzbekistan achieve its climate goals and build a greener and more sustainable future,” said Makhtar Diop, IFC's managing director at the agreement signing ceremony.