Joint Stock Commercial Bank "Hamkorbank" with participation of foreign capital
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
Hamkorbank (HB) is a leading privately-owned bank in Uzbekistan. HB is the ninth largest bank in a sector dominated by state-owned banks and the third largest private bank, holding 3.2% of sector assets and 3.4% of sector loans. The bank is a market leader in its chosen MSME segment. HB has 3,218 staff (approximately 25% female) and operates through a countrywide network of 157 banking service centers, serving more than 3 million customers, including around 50.000 legal entities (mainly MSMEs) and about 60 thousand individual entrepreneurs. The bank's strategy is to focus on Micro, SME and retail customers. HB has been FMO client since 2012.
What is our funding objective?
The up to USD 100mln loan agreement is a dual-currency facility, allowing HB to attract funding in both local currency (UZS) and USD. This 3-year loan is fully allocated to finance a combination of micro-entrepreneurs and women- and youth-led SMEs, contributing to FMO's Reducing Inequalities target. The loan facility includes an A-loan of USD 70mln and a B-loan of USD 30mln, in line with FMO's goal to mobilize third-party investments in our clients and support our impact strategy.
Why do we fund this investment?
Reducing Inequalities (SDG10) is at the heart of FMO’s strategy. This loan supports women and young SME entrepreneurs, as well as micro-entrepreneurs, by providing access to finance. Furthermore, it offers HB stable medium-term funding, which indirectly contributes to job creation, job maintenance and economic growth. MSMEs are the backbone of the Uzbek economy. SMEs generate approximately 60% of the country’s GDP and provide more than 75% of total jobs. Access to credit remains critical for the further development of the MSME segment.
What is the Environmental and Social categorization rationale?
This investment is E&S A categorized due to the bank’s exposure to sectors with high environmental and social risks, such as cement, metallurgy, glass manufacturing, construction, chemicals. Additionally, the bank has indirect exposure to the cotton sector through the textile value chain, which is associated with contextual labor- and human rights issues in Uzbekistan. It is important to note that HB does not finance coal mines or coal-fired power plants. The bank has a dedicated E&S team and an Environmental and Social Management System, which has been further strengthened with FMO's support. This includes the successful completion of an Environmental and Social Action Plan agreed upon in 2023, in line with EDFI requirements and HB's ambitions related to sustainable finance.
More investments
- Website customer/investment
- http://www.hamkorbank.uz/
- Region
- Europe & Central Asia
- Country
- Uzbekistan
- Sector
- Financial Institutions
- Publication date
- 8/28/2024
- Effective date
- 8/15/2024
- 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) - A