A syndicated loan of up to USD 20 million to Ipak Yuli Bank comprising an A Loan of up to USD 10 million to be provided by the EBRD and a B Loan for up to USD 10 million to be attracted on a best effort basis. If successful, this will be the first syndicated loan arranged by the Bank in Uzbekistan in the Financial Institutions sector. The loan will be accompanied by Technical Cooperation (TC) funds.
The syndicated loan will allow Ipak Yuli Bank to diversify its funding base and expand lending to support private micro, small and medium-sized enterprises (MSMEs) in Uzbekistan.
This project will continue the EBRD's re-engagement path in the country building new relationships with the financially sound banks servicing MSMEs. The syndicate loan will support Ipak Yuli Bank's competitiveness by increasing availability of medium-term financing for on-lending to private MSMEs.
Providing an option for the local currency funding as well as requirements to comply with financial covenants will contribute to resilience of the institution.
Ipak Yuli Bank, founded in April 1990 in Uzbekistan, is a universal commercial bank with primary focus on SME clients. It is the 12th largest bank in the country with a 2% share of sector assets as of end 2017. The distribution network comprises 14 branches and 65 mini-banks providing good client outreach in the country.