<div><h2>Project Description</h2><p></p><p>The provision of a three-year senior loan (MSME Loan II) of up to US$ 10 million in the local currency equivalent to Ipak Yuli Bank (IYB), a major private bank in Uzbekistan. The Loan will be provided under the Financial Intermediaries Framework (FIF). Loan proceeds will be on-lent to local small and medium companies and private entrepreneurs as per the eligibility criteria defined in the Policy Statement for SMEs. </p><p></p><h2>Project Objectives</h2><p></p><p>The MSME Loan II will enable Ipak Yuli Bank to maintain diversification of its funding base, extend duration of its liabilities and expand financing of MSMEs in Uzbekistan at a multiple of the EBRD financing.</p><p></p><h2>Transition Impact</h2><p>ETI score: 60</p><p style="margin-top: -13px;"></p><p>The project contributes to the objectives of the FIF, supporting the Competitive and Resilient transition qualities. FIF seeks to (i) foster MSME competitiveness by increasing availability of financing and (ii) contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes and marketing related to MSME lending. By ensuring that banks have adequate underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.</p><p></p><h2>Client Information</h2><p>IPAK YULI JOINT-STOCK INNOVATION COMMERCIAL BANK</p><p style="margin-top: -13px;"></p><p>Ipak Yuli Bank is a leading privately-owned bank in Uzbekistan with focus on SMEs. With a market share of close to 3 per cent, Ipak Yuli Bank is the fourth largest by assets private bank in Uzbekistan out of 25 private banks.  </p><p></p><h2>EBRD Finance Summary</h2><p>										USD 10,000,000.00									</p><p style="margin-top: -13px;"></p><p>A three-year senior unsecured loan of up to US$ 10 million equivalent provided in a single tranche in the synthetic local currency (Uzbek Sum).</p><p></p><h2>Total Project Cost</h2><p>										USD 10,000,000.00									</p><h2>Additionality</h2><p></p><p><strong>Financing Structure: </strong>The<strong> </strong>EBRD offers local currency financing on terms not readily available in the market. The EBRD offers a tenor, which is above the market average and is necessary to structure the project.</p><p><strong>Risk Mitigation: </strong>The<strong> </strong>EBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk and/or finance expansion in the MSME sector.</p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised FI (ESP 2019). IYB is an existing client of the Bank and environmental and social due diligence included a review of the annual environmental and social report (the AESR-2022). IYB will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; continue to implement the applicable the EBRD's E&amp;S Risk Management Procedures for Financial Institutions and Corporate, SME and Micro Lending; and submit Annual Environmental and Social Reports to the Bank. IYB is also required to continue applying the ESMS Risk Management and categorization going forward in line with the EBRD's ESP 2019 including the EBRD's E&amp;S Exclusion and Referral List. The project has defined use of proceeds under the FIF programme and is determined Paris aligned based on the application of the Bank's Paris alignment methodology for indirect finance.</p><p></p><h2>Technical Cooperation and Grant Financing</h2><p></p><p><strong>Technical Cooperation (TC):</strong> None.</p><p><strong>Non-Technical Cooperation (Non-TC): </strong>None.</p><p></p><h2>Company Contact Information</h2><p>Dilaziz Sultanov<br/>d.sultanov@ipakyulibank.uz<br/>+998 (78) 140-69-43<br/>+998 (78) 140-69-05<br/>http://www.ipakyulibank.uz/<br/>2, Abdulla Qodiriy Street, Tashkent, Uzbekistan<br/></p><h2>PSD last updated</h2><p>16 Apr 2024</p><div id="docsLinks" style="display:none"><h2>Related material</h2><ul class="relMat"></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "55205";					</script><h2>	Understanding Transition</h2><p>	Further information regarding the EBRD’s approach to measuring transition impact is available <a href="https://www.ebrd.com/what-we-do/economic-research-and-data/transition-impact.html">here</a>.</p><h2>	Business opportunities</h2><p>	For business opportunities or procurement, contact the client company.</p><p>	For business opportunities with EBRD (not related to procurement) contact:</p><p>	Tel: +44 20 7338 7168<br/>	Email: <a href="mailto:projectenquiries@ebrd.com">projectenquiries@ebrd.com</a></p><p>	For state-sector projects, visit <a href="https://www.ebrd.com/pages/workingwithus/procurement.shtml">EBRD Procurement</a>:<br/><br/>	Tel: +44 20 7338 6794<br/>	Email: <a href="mailto:procurement@ebrd.com">procurement@ebrd.com</a></p><h2>	General enquiries</h2><p>	Specific enquiries can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Environmental and Social Policy (ESP)</h2><p>	The <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a> and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.</p><p>	More information on the EBRD’s practices in this regard is set out in the <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a>.</p><h2>	Integrity and Compliance</h2><p>	The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.</p><p>	OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to <a href="mailto:compliance@ebrd.com">compliance@ebrd.com</a>. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.</p><h2>	Access to Information Policy (AIP)</h2><p>	The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/public-information-policy.html">Access to Information Policy</a> page to find out what information is available from the EBRD website.</p><p>	Specific requests for information can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Independent Project Accountability Mechanism (IPAM)</h2><p>	If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).</p><p>	IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">Environmental and Social Policy</a> or Project-specific provisions of its <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/access-to-information-policy.html">Access to Information Policy</a>; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.</p><p>	Please visit the <a href="https://www.ebrd.com/project-finance/independent-project-accountability-mechanism.html">Independent Project Accountability Mechanism webpage</a> to find out more about IPAM and its mandate; how to <a href="https://www.ebrd.com/eform/IPAM/Request_form">submit a Request</a> for review; or contact IPAM  via email <a href="mailto:ipam@ebrd.com">ipam@ebrd.com</a> to get guidance and more information on IPAM and how to submit a request.</p><p>	 </p></div>

FIF - Ipak Yuli Bank MSME Loan II

The provision of a three-year senior loan MSME Loan II of up to US 10 million in the local currency equivalent to Ipak Yuli Bank IYB, a major private bank in Uzbekistan. The Loan will be provided under the Financial Intermediaries Framework FIF. Loan proceeds will be on-lent to local small and medium companies and private entrepreneurs as per the eligibility criteria defined in the Policy Statement for SMEs. The MSME Loan II will enable Ipak Yuli Bank to maintain diversification of its funding base, extend duration of its liabilities and expand financing of MSMEs in Uzbekistan at a multiple of the EBRD financing.ETI score: 60The project contributes to the objectives of the FIF, supporting the Competitive and Resilient transition qualities. FIF seeks to i foster MSME competitiveness by increasing availability of financing and ii contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes and marketing related to MSME lending. By ensuring that banks have adequate underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.IPAK YULI JOINT-STOCK INNOVATION COMMERCIAL BANKIpak Yuli Bank is a leading privately-owned bank in Uzbekistan with focus on SMEs. With a market share of close to 3 per cent, Ipak Yuli Bank is the fourth largest by assets private bank in Uzbekistan out of 25 private banks.  USD 10,000,000.00A three-year senior unsecured loan of up to US 10 million equivalent provided in a single tranche in the synthetic local currency Uzbek Sum.USD 10,000,000.00TheEBRD offers local currency financing on terms not readily available in the market. The EBRD offers a tenor, which is above the market average and is necessary to structure the project.TheEBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk andor finance expansion in the MSME sector.Categorised FI ESP 2019. IYB is an existing client of the Bank and environmental and social due diligence included a review of the annual environmental and social report the AESR-2022. IYB will be required to continue to comply with EBRD's Performance Requirements PRs 2, 4 and 9; continue to implement the applicable the EBRD's ES Risk Management Procedures for Financial Institutions and Corporate, SME and Micro Lending; and submit Annual Environmental and Social Reports to the Bank. IYB is also required to continue applying the ESMS Risk Management and categorization going forward in line with the EBRD's ESP 2019 including the EBRD's ES Exclusion and Referral List. The project has defined use of proceeds under the FIF programme and is determined Paris aligned based on the application of the Bank's Paris alignment methodology for indirect finance. None.None.Dilaziz Sultanovd.sultanovipakyulibank.uz+998 78 140-69-43+998 78 140-69-05http:www.ipakyulibank.uz2, Abdulla Qodiriy Street, Tashkent, Uzbekistan16 Apr 2024Further information regarding the EBRD's approach to measuring transition impact is available here.For business opportunities or procurement, contact the client company.For business opportunities with EBRD not related to procurement contact:Tel: +44 20 7338 7168Email: projectenquiriesebrd.comFor state-sector projects, visit EBRD Procurement:Tel: +44 20 7338 6794Email: procurementebrd.comSpecific enquiries can be made using the EBRD Enquiries form.The ESP and the associated Performance Requirements PRs set out the ways in which the EBRD implements its commitment to promoting "environmentally sound and sustainable development".  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders' concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project's environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.More information on the EBRD's practices in this regard is set out in the ESP.The EBRD's Office of the Chief Compliance Officer OCCO promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to complianceebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.Specific requests for information can be made using the EBRD Enquiries form.If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful e.g. through the Client's Project-level grievance mechanism or through direct engagement with Bank management, individuals and organisations may seek to address their concerns through the EBRD's Independent Project Accountability Mechanism IPAM.IPAM independently reviews Project issues that are believed to have caused or to be likely to cause harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipamebrd.com to get guidance and more information on IPAM and how to submit a request.

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