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Supporting SMEs and reducing inequalities in Uzbekistan

Project

uzbekistan ipak yuli smes
Triodos
Signature date
Location
Uzbekistan
Financing tool
Loan
Financing amount (Euro)
53650999
Financing details
USD 60m loan (USD 30m in 2023 + USD 30m in 2021)
Customer
JOINT-STOCK INNOVATION COMMERCIAL BANK IPAK YULI
Type of customer
Financial institution
Country of headquarters
Uzbekistan
Project number
PUZ1002 / PUZ1015
Environmental and social ranking
IF-B
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This project is part of the 2X Challenge initiative.
Mention 2X Challenge UK

This information is given at the time of signature, without prejudice to any developments in the operation/project.

In 2021 and 2024, Proparco partnered with the Uzbek bank Ipak Yuli Bank. The objective of Proparco’s support is to assist the bank with its MSME financing strategy, increase access to financial products for women, and reduce regional inequalities by channeling financing towards marginalized regions.

Client presentation

Ipak Yuli Bank, which was set up in 1990, is the oldest private bank in Uzbekistan and the third largest private bank in terms of portfolio size. It has developed by focusing on the MSME segment, which remains underfinanced by the Uzbek banking sector. It also benefits from a number of partnerships with Development Finance Institutions (DFIs) and Microfinance Investment Vehicles (MIVs), which enable it to strengthen this expertise. 

Project description

An initial investment in 2021 involved a USD 30m multicurrency senior credit line (available in USD or in Uzbek sum - UZS) to help Ipak Yuli increase its loans to microenterprises and SMEs and finance green projects (10% of the amount of the credit line). In 2024, Proparco allocated a new USD 30m senior credit line to support the bank’s development plan, with 40% of the financing allocated to marginalized regions, 10% to companies qualifying under the 2X Challenge for the reduction of gender inequalities, and 50% to support Uzbek SMEs.

Project impact

The expected impacts of this project are: 

  •  More than 5,200 jobs supported over the next 5 years in the companies financed by the bank (indirect jobs), and including 50 direct jobs in the bank
  •  Support for more than 120 Uzbek MSMEs
  •  Contribution to gender equality through a commitment to finance companies qualifying under the 2X Challenge (10% of Proparco’s financing) and the implementation of a policy to improve access for women to the bank’s financial products. In addition, 48% of the bank’s employees are women (2020 data) and it aims to strengthen the representation of women in the management team and in senior management.

The project will thereby contribute to the achievement of SDG 8 (“Decent work and economic growth”) and SDG 10 (“Reduced inequalities”).