EBRD, Hamkorbank to share loan to support dairy enterprise in Uzbek district

Finance Materials 28 June 2021 17:08
Baku, Azerbaijan Trend News Agency Klavdiya Romakayeva
EBRD, Hamkorbank to share loan to support dairy enterprise in Uzbek district

The European Bank for Reconstruction and Development (EBRD) and Uzbek Hamkorbank to lend credit for Tillo Domor dairy enterprise in Urgench district in Khorezm region of Uzbekistan, Trend reports referring to the press service of the EBRD.

According to the information, the EBRD is increasing its support to small and medium-sized enterprises in Uzbekistan in partnership with its long-term financial intermediary Hamkorbank. It is noted that the two institutions are financially contributing to the development of dairy sector in the Khorezm region responsible for the production of nearly 10 per cent of the national milk output.

It is reported that Hamkorbank is lending up to €0.5 million to Tillo Domor, while 65 percent of the risk on the loan will be shared by the EBRD under a risk-sharing framework. With this transaction, the Bank’s exposure to the company through risk-sharing products has now reached €1.5 million since 2019.

At the same time, the loan is supported by the EBRD’s Finance and Technology Transfer Center for Climate Change (FINTECC) program financed by the Global Environmental Facility Trust Fund.

Thus, a grant of $106,200 will cover energy efficiency measures designed to cut the annual consumption of water by 6,500 cubic meters and help reduce annual CO2 emissions by 368 tones though natural gas savings.

To date, the EBRD has invested over €2 billion through 92 projects in the economy of Uzbekistan.