Project detail - JSCB HAMKORBANK

JSCB HAMKORBANK

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

OJSC Hamkorbank, founded in 1991, is the largest privately owned bank in Uzbekistan and is headquartered in Andijan, outside the country's capital Tashkent. Hamkorbank offers a wide spectrum of banking services to its clients, which mainly comprise SMEs active in trade and manufacturing. The bank is the market leader in the remittances business in Uzbekistan. Hamkorbank is an existing FMO client, having received a loan in 2013 for the purposes of on-lending to local micro-, small- and medium-sized enterprises.

What is our funding objective?

Hamkorbank is in a transition phase and is expanding; FMO's financing will support this. The bank is well positioned with its primary location in the local Fergana Valley and wants to increase its foothold throughout the country. The provision of scarce risk-bearing capital will allow the bank to attract further long-term funding and increase its loan book by around 6-7 times FMO's investment. The FMO-nominated board member will further help strengthen the bank.

Why do we fund this investment?

FMO's investment will support a higher number of loans provided in the Uzbek economy. In addition to providing financing, FMO hereby creates a precedent that will assist the Uzbek government in its policy to make the country more open for Western foreign investments. With this transaction FMO supports a privately owned Financial Institution, grows FMO's presence in Central Asia and opens up a new market for investment.

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Website customer/investment
http://www.hamkorbank.uz/
Region
Europe & Central Asia
Country
Uzbekistan
Sector
Financial Institutions
Effective date
9/9/2014
Total FMO financing
UZS 21524.20 MLN
Funding
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B