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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 10253 |
| Project name | SEF Parvina Bank Credit Line |
| Country | Uzbekistan |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Parvina Bank, Private Closed Joint Stock Commercial Bank |
| Environmental category | FI |
| Date SPI disclosed | July 11, 2000 |
| Projected board date | August 25, 2000 |
| Status | Active |
| Previous Events | Invested: January 30, 2003
Signed: March 30, 2001
Approved: September 28, 2000 |
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| Project sponsor and major shareholders of project company |
| Parvina Bank was established as a commercial bank in the city of Samarkand on January 21, 1994. The bank is one of the few banks in Uzbekistan that are truly privately held, and as common in many emerging markets, it is a family-owned bank. The bank's shares are held by a number of entities, all ultimately controlled by Mr. Abdulrashid Abdusalyamov, the Chairman of the Bank Council, and his family. Three corporate entities controlled by Mr. Abdusalyamov hold a total of 44.37%, with the balance held by other members of his family. |
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| Total project cost and proposed IFC investment |
| The project cost is estimated at US$1.0 million. IFC will provide a subordinated loan in the amount of US$1.0 million |
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| Location of project and description of site |
| Parvina Bank is headquartered in Samarkand, and operates through two full branches and 8 so called mini-banks (these are very small offices that function as teller/cashier for consumer transactions - no money is kept overnight on these premises). There is one branch in Tashkent. The total number of staff was 156 at year-end 1999. The bank's business is primarily focused on SME lending (over 90% of total loans), and the balance comes from lending and deposit activities with individual clients. The mini-banks are active in servicing customers' utility payments, money transfers and deposits. At year-end 1998, the bank had 3,000 customers, and year-end 1999 the client base increased significantly to more than 4,000. The bank plans to open two more branches in 2000 and 20 more mini-banks. |
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| Description of company and purpose of project |
The project involves provision of a long-term credit line totaling up to US$1.0 million to Parvina Bank. The credit line will be in the form of a subordinated debt to be on-lent to small and medium enterprises (SMEs). The credit line will be used to provide sub-loans to finance capital expenditures, investments for expansions, working capital and trade finance necessary for the development of the nascent Uzbek private sector.
The sub-loan amount may be as low as US$10,000 and the maximum size is expected to be US$250,000. Eligible SMEs are expected to be privately owned, have sound management and balance sheet, have prepared a viable business plan, and have an export oriented business or have arrangements in place to obtain foreign exchange.
The project seeks to address the scarcity of term finance in Uzbekistan, especially to recently privatized or newly created private SMEs. According to the International Monetary Fund (IMF), it is very difficult for SMEs to obtain foreign exchange through official channels since the intensification of foreign exchange restrictions in late 1996. The credit line will support commercially viable projects in the country's emerging private sector by facilitating term and other financing in hard currency. |
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| Environmental and social issues - Category FI |
This is a category FI Type 2 project according to IFC’s environmental and social review procedure. Parvina Bank has committed to developing an environmental management system designed to ensure that SME clients comply with environmental, health and safety requirements of Uzbekistan and IFC’s Microfinance Exclusion List. Parvina Bank will submit an environmental management plan to IFC for review prior to disbursement, plus annual environmental performance reports thereafter.
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| To contact the project company, please write to: |
Parvina Bank
82 b, O'zbekiston Street,
Samarkand City 703005
Chairman: Mr. Dilshod KhakberdiyevichPulatov
Phone: 7 (3662) 31 05 07 / 31 16 68 (e-mail: Parvina@online.ru) |
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