|
|
 |
 |
| 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) |
| |
| Project number | 10252 |
| Project name | Andijan Bank Credit Line |
| Country | Uzbekistan |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Hamkorbank, Joint Stock Commercial Bank |
| Environmental category | FI |
| Date SPI disclosed | May 8, 2000 |
| Projected board date | June 15, 2000 |
| Status | Active |
| Previous Events | Invested: December 24, 2002
Signed: April 16, 2001
Approved: September 22, 2000 |
|
| Project sponsor and major shareholders of project company |
| JCS Andijan Bank is the largest privately owned bank in Uzbekistan. The project sponsor and major shareholder is Mr. Ikram I. Ibragimov, the bank's president. Together with his brothers, Mr. Ibragimov controls about 25% of the bank's shares. About 48% of the shares are owned by private individuals and 16% by corporations. |
|
| Total project cost and proposed IFC investment |
| The project cost is estimated at US$3.0 million. IFC will provide a subordinated partially convertible loan in the amount of US$3.0 million. Only part of the Subordinated loan will be convertible into up to 15% equity for a period of 5 years. |
|
| Location of project and description of site |
| JCS Andijan Bank was established in August 31, 1991, in Andijan, a large town in the center of the Ferghana Valley, east of Tashkent, the capital city. Initially the bank concentrated on the Andijan local region, but has recently spread its business to the neighboring Ferghana regionas well as establishing regional offices throughout the major cities in Uzbekistan: Tashkent, Namangan, Samarkand and Navoi. Presently, the bank has 6 branches. In addition to the 6 branches (each employing about 30 staff), the bank has 17 so called mini-banks (each with 2 to 8 staff) and more than 50 service kiosks (each with 1 to 2 staff). The mini-banks are very small branches that function as teller/cashier for consumer transactions such as utilities payment, money transfers and deposits. |
|
| Description of company and purpose of project |
The project involves (i) provision of a long-term subordinated partially convertible credit line totaling up to US$3 million; and (ii) technical assistance (TA) to Andijan Bank, an Uzbek privately held commercial bank. The credit line will be used to provide sub-loans to small and medium sized enterprises (SMEs) 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 less than US$150,000. 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 get 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. |
|
| Environmental and social issues - Category FI |
This is a category FI Type 2 project according to IFC’s environmental review procedure. The intermediary bank will be required to undertake an environmental review of eligible borrower’s environmental performance and each sub-projects compliance with the Government of Uzbekistan’s environmental, health and safety requirements and, if applicable, IFC’s environment, health and safety guidelines and policies. In addition, IFC will assess the bank’s capability to carry out environmental reviews.
|
|
|
| To contact the project company, please write to: |
Andijan Bank
85, Bobur ave.
Andijan City, 710000
Republic of Uzbekistan
Phone: (3742) 247 039
Fax: (3742) 254 922 |
|
|
|