Standard Chartered arranges EUR 132.5 million financing for Joint-Stock Company “O'zbekiston Metallurgiya Kombinat” (Uzmetkombinat). Uzmetkombinat is the largest steel producer in Uzbekistan. This loan is supported by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Standard Chartered acted as Global Coordinator, Facility Agent, and Mandated Lead Arranger.
The proceeds of this loan will be used to complete the construction of Uzmetkombinat’s new Casting and Rolling Complex in Bekabad, Southern Uzbekistan. This Complex will be used to produce hot-rolled coils (HRCs), which were previously imported. Domestically sourced HRCs are a new product for both Uzmetkombinat and Uzbekistan. Primary consumers of this product will include pipe manufacturers and construction companies who will benefit from enhanced supply chain efficiency and lower costs due to the domestic availability of hot-rolled coils.
Uzmetkombinat plays an important role in the development and growth of the local community, employing 8,000 staff and creating many more jobs indirectly in the town of Bekabad, which has a population of 100,000 people. Most of the national construction sector relies on the steel giant for ferrous metal, with domestic sales accounting for more than a third of ferrous metal consumption in Uzbekistan.
Desislava Radeva, Executive Director, Development and Agency Finance, Standard Chartered, says: “We are proud to partner once again with ICIEC to support a valuable client, Uzmetkombinat. Steel production represents a key strategic industry for Uzbekistan and the domestic sourcing of HRCs is a huge leap forward for the country. It is an example of Standard Chartered’s expertise in driving prosperity in some of the world’s most dynamic markets.”
Dr. Khalid Khalafalla, Chief Executive Officer, ICIEC says: "This significant transaction underscores ICIEC’s unwavering commitment to supporting strategic industries across our Member States. By providing insurance coverage for this facility, we mitigate investment risks and enable Uzbekistan to expand its domestic steel production capacity. The Casting and Rolling Complex will play a vital role in significantly reducing import dependency, strengthening supply chain resilience, and driving sustainable industrial growth that generates jobs and uplifts local communities. Our collaboration with Standard Chartered and Uzmetkombinat represents a crucial stride towards advancing sustainable industrial development."
Bakhodir Abdullaev, Chairman of the Management Board and CEO, Joint-Stock Company “O'zbekiston Metallurgiya Kombinat” (Uzmetkombinat), says: “We extend our sincere appreciation to Standard Chartered and ICIEC for their trust and long-standing support of Uzbekistan’s industrial development. This strategic financing reflects a strong international partnership and marks a new chapter for our company - the launch of the country’s first domestic production of hot-rolled coils. The project will significantly reduce import dependency, reinforce local supply chains, and give fresh momentum to key sectors of the national economy.”
This transaction marks the second project Standard Chartered has completed with ICIEC in Uzbekistan. The first project supported the growth of small and medium-sized enterprises in Uzbekistan through a EUR 160.4 million Islamic financing extended to Joint-Stock Commercial Bank “Agrobank”, one of the largest banks in the country.
