<div><h2>Project Description</h2><p></p><p>The provision of a three-year senior loan (YiB Loan I) of up to US$ 10 million in the local currency equivalent to Ipak Yuli Bank (IYB), a major private bank in Uzbekistan, under the Youth in Business Programme for Central Asia (CA YiB). The proceeds of the Bank's investment will be used for on-lending to eligible youth-led MSMEs in line with standard eligibility criteria.</p><p></p><h2>Project Objectives</h2><p></p><p>The YiB Loan I will enable Ipak Yuli Bank to maintain further diversification of its funding base, and to finance youth-led businesses in Uzbekistan. Ipak Yuli Bank will benefit from a comprehensive technical assistance (TC) to develop the internal capacity for financing youth-led businesses and to contribute to the improvement in access to finance for youth entrepreneurs in Uzbekistan.</p><p></p><h2>Transition Impact</h2><p>ETI score: 71</p><p style="margin-top: -13px;"></p><p>As part of the CA YiB, the YiB Loan I to Ipak Yuli Bank will support Inclusive (primary) and Competitive (secondary) transition qualities through promotion of youth entrepreneurship and, more broadly, youth's active participation in business activities. Taken together, these targets will contribute to improving access to finance for youth entrepreneurs in Uzbekistan which IYB may not have pursued otherwise.</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 under the Youth in Business Programme for Central Asia (CA YiB). The loan will be provided in two equal tranches of US$ 5 million and will be available in the synthetic local currency (Uzbekistan Sum).</p><p></p><h2>Total Project Cost</h2><p>										USD 10,000,000.00									</p><h2>Additionality</h2><p></p><p><strong>Innovative financing structures and/or instruments: </strong>The project will benefit from a First Loss Risk Cover and a Performance Based Compensation, a tailor-made and innovative instrument in the Central Asian market.</p><p><strong>Financing Structure: </strong>The EBRD loan will provide much-needed term financing which will help address issues of limited availability of medium- to long-term financing for Youth MSMEs. The EBRD along with other international creditors is one of the rare providers of long term funding which local banks need in order to maintain their lending operations and meet customer demands.</p><p><strong>Knowledge, innovation and capacity building: </strong>The Programme includes extensive capacity building, comprising training, advisory support for participating banks and for Youth MSMEs through ASB activities, allowing all parties to access and benefit from knowledge and expertise that may not be present in the local market. A strong focus is on digital delivery to maximise outreach and improve accessibility to services in the regions outside of capital cities, making the products attractive to young entrepreneurs and micro-companies.</p><p>The Programme helps the client raise its inclusive financing standards by generating a better awareness and understanding of the needs of the underserved segment of young entrepreneurs. </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><em><strong>Technical Cooperation (TC)</strong>:</em></strong> The Central Asian Youth in Business Programme includes two linked TC components:</p><p>(i) tailored capacity-building for participating financial institutions:</p><p><em>Funding source:</em> SSF</p><p><em>Amount/currency:</em> EUR 4 million at the Programme level</p><p>(ii) capacity-building for Youth MSMEs via the Advice for Small Businesses (ASB) Programme:<br/> <em>Funding source:</em> SSF</p><p><em>Amount/currency:</em> EUR 6 million at the Programme level<em><br/></em></p><p><em>Client contribution:</em> It is expected that the client will contribute in parallel in connection with seminars, events, marketing activities and materials, which may be used for training and promotion of YiB-related products.</p><p><strong>Non-Technical Cooperation (Non-TC): </strong>The project involves a First Loss Risk Cover (FLRC), in favour of the client, of up to 7% of the YiB Loan I (up to USD 700 thousand; limited to 70% per a single sub-loan). The FLRC will compensate for credit losses of IYB, if any, as a result of its participation in the Programme.</p><p>The project also involves a Performance-based Compensation (PBC) of up to 3% of the YiB Loan (up to USD 300 thousand). The PBC is envisioned to partially compensate IYB for the up-front investments related to building the necessary infrastructure for a sustainable YiB lending expansion.</p><p><em>Funding source:</em> SSF</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 = "55204";					</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 - CA YiB Programme - Ipak Yuli Bank Loan I

The provision of a three-year senior loan YiB Loan I of up to US 10 million in the local currency equivalent to Ipak Yuli Bank IYB, a major private bank in Uzbekistan, under the Youth in Business Programme for Central Asia CA YiB. The proceeds of the Bank's investment will be used for on-lending to eligible youth-led MSMEs in line with standard eligibility criteria.The YiB Loan I will enable Ipak Yuli Bank to maintain further diversification of its funding base, and to finance youth-led businesses in Uzbekistan. Ipak Yuli Bank will benefit from a comprehensive technical assistance TC to develop the internal capacity for financing youth-led businesses and to contribute to the improvement in access to finance for youth entrepreneurs in Uzbekistan.ETI score: 71As part of the CA YiB, the YiB Loan I to Ipak Yuli Bank will support Inclusive primary and Competitive secondary transition qualities through promotion of youth entrepreneurship and, more broadly, youth's active participation in business activities. Taken together, these targets will contribute to improving access to finance for youth entrepreneurs in Uzbekistan which IYB may not have pursued otherwise.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 under the Youth in Business Programme for Central Asia CA YiB. The loan will be provided in two equal tranches of US 5 million and will be available in the synthetic local currency Uzbekistan Sum.USD 10,000,000.00The project will benefit from a First Loss Risk Cover and a Performance Based Compensation, a tailor-made and innovative instrument in the Central Asian market.The EBRD loan will provide much-needed term financing which will help address issues of limited availability of medium- to long-term financing for Youth MSMEs. The EBRD along with other international creditors is one of the rare providers of long term funding which local banks need in order to maintain their lending operations and meet customer demands.The Programme includes extensive capacity building, comprising training, advisory support for participating banks and for Youth MSMEs through ASB activities, allowing all parties to access and benefit from knowledge and expertise that may not be present in the local market. A strong focus is on digital delivery to maximise outreach and improve accessibility to services in the regions outside of capital cities, making the products attractive to young entrepreneurs and micro-companies.The Programme helps the client raise its inclusive financing standards by generating a better awareness and understanding of the needs of the underserved segment of young entrepreneurs. 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. The Central Asian Youth in Business Programme includes two linked TC components:i tailored capacity-building for participating financial institutions:Funding source: SSFAmountcurrency: EUR 4 million at the Programme levelii capacity-building for Youth MSMEs via the Advice for Small Businesses ASB Programme: Funding source: SSFAmountcurrency: EUR 6 million at the Programme levelClient contribution: It is expected that the client will contribute in parallel in connection with seminars, events, marketing activities and materials, which may be used for training and promotion of YiB-related products.The project involves a First Loss Risk Cover FLRC, in favour of the client, of up to 7 of the YiB Loan I up to USD 700 thousand; limited to 70 per a single sub-loan. The FLRC will compensate for credit losses of IYB, if any, as a result of its participation in the Programme.The project also involves a Performance-based Compensation PBC of up to 3 of the YiB Loan up to USD 300 thousand. The PBC is envisioned to partially compensate IYB for the up-front investments related to building the necessary infrastructure for a sustainable YiB lending expansion.Funding source: SSFDilaziz 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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