Ipak Yuli Bank raised USD 50 mln in credit funds from the Dutch entrepreneurial development bank (FMO) for the development of small and medium-sized businesses (SMEs) in Uzbekistan.

The approved loan facility is provided in multicurrency form, meaning that credit resources can be attracted both in USD and in national currency.

Huib-Jan de Ruijter, Chief Investment Officer FMO, said, “We are pleased to once more reaffirm our longstanding relationship with Ipak Yuli Bank through our latest high-impact transaction. As the proceeds of the transaction will be used exclusively to finance eligible Green projects and to finance underbanked entrepreneurs such as youth, female, agricultural and micro-entrepreneurs, Ipak Yuli Bank’s mission aligns perfectly with our Green and Reducing Inequalities agendas.”

Through the signed agreement, the Bank plans to direct loans to MSME projects, as well as to support projects aimed at energy efficiency, including promotion of renewable energy sources. In addition, the Bank will finance developing the activities of young entrepreneurs, as well as women entrepreneurs in the country.

“This agreement is another significant event for us in the framework of cooperation between our banks, contributing to the economic development of Uzbekistan. New funds will allow Bank "Ipak Yuli" further development and will contribute to ensuring efficient use of energy resources of the country among private enterprises. We would also like to note that thanks to loan resources the Bank contributes to creation of new jobs in private enterprises, leaded by young entrepreneurs and women entrepreneurs,” noted Chairman of the Management Board Saidabror Saydakhmedov.

The first cooperation between Ipak Yuli Bank and FMO dates back to 2013 within the framework of a credit line of USD 13 mln for the development of SMEs and support of private entrepreneurship in the country. Since then, four more loan agreements were signed between the banks for a total amount of USD 78 mln.

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About FMO 

FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50-year proven track record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.3 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information please visit www.fmo.nl