Joint Stock Innovative Commercial Bank Ipak Yuli
Status: Approved investmentWhy disclosure?
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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
JSICB Ipak Yuli Bank (“IYB”) is a mid-sized universal bank in Uzbekistan with focus on Micro, Small and Medium sized enterprises. With 2,193 staff (46% female) the bank operates a network of 17 branches in key regions of the country. IYB is an existing client of FMO since 2013.
What is our funding objective?
The USD 50m loan agreement is a multi-currency facility allowing IYB to attract funding in local currency UZS as well as USD and EUR. This 3-year loan is used to finance a combination of Micro entrepreneurs and Women and Youth SMEs (80%), which contribute to FMO's Reducing Inequalities target. In addition, the loan will partially be used to finance eligible Green projects (20%), supporting FMO's Climate Action target.
Why do we fund this investment?
Green and Reducing Inequalities is at the heart of FMO’s strategy. The loan supports women and young MSME entrepreneurs, with access to finance. Furthermore, this loan provides IYB with stable medium-term funding, which indirectly contributes to supporting job creation, job maintenance and economic growth. MSMEs are the core of the Uzbek economy. SMEs generate ~60% of the country’s GDP and provide more than 75% of total jobs. Access to credit remains critical for further development of the MSME segment.
What is the Environmental and Social categorization rationale?
IYB has been categorized as Category B in accordance with FMO’s Sustainability Policy. IYB's activities are expected to include business activities that have potential limited adverse environmental or social risks or impacts that are few in number and readily addressed through mitigation measures. IYB's E&S risks are managed through an Environmental and Social Management System (ESMS) operated by a dedicated E&S team. As part of the deal, IYB will be required to apply the EDFI Exclusion List, Uzbekistan E&S laws and regulations and the IFC Performance Standards Framework for their identified Triggered Transactions.
More investments
- Website customer/investment
- http://ipakyulibank.uz/index.php/en/
- Region
- Europe & Central Asia
- Country
- Uzbekistan
- Sector
- Financial Institutions
- Publication date
- 5/22/2023
- Effective date
- 5/11/2023
- Total FMO financing
- USD 50.00 MLN
- Funding
- FMO NV
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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