JSCB HAMKORBANKStatus: Completed investment
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Who is our customer
Hamkorbank ("HB", "the bank") is the largest privately-owned bank and the 8th largest bank in Uzbekistan, with ~5% market share measured by assets (USD ~850 million). With 42 branches and 168 mini banks, they operate a countrywide network. The bank's strategy is to focus on Micro, SME and retail customers. The bank is an existing customer of FMO since 2012.
What is our funding objective?
Up to USD 40 million loan facility. The loan has the option to be be funded in local currency UZS for USD 20m equivalent, which is scarcely available for medium to long terms. This 2-year loan will be used to finance a combination of women, youth, agriculture Micro and SME customers of HB (USD 20 million), which contribute to FMO's Reducing Inequalities target. In addition, the loan will be used to finance Green projects (USD 20 million), supporting FMO's Climate Action target.
Why do we fund this investment?
Green and Reducing Inequalities is at the heart of FMO’s strategy. The loan contributes to this strategy by supporting women and young (agricultural) MSME entrepreneurs, with access to finance and by addressing climate action. Furthermore, this loan provides HB with stable medium term funding, which indirectly contributes to supporting job creation, job maintenance and economic growth. Uzbekistan is one of the poorer countries in the region with ~15% of the population living below the poverty line (down from 30% in 2001), of which 75% live in rural areas, where agriculture is the main industry. MSMEs are the core of the Uzbek economy. In 2016 SMEs generated ~60% of the country’s GDP and provided more than 75% of total jobs. Access to credit remains critical for further development of the MSME segment.
What is the Environmental and Social categorization rationale?
Hamkorbank has been categorized as Category B in accordance with FMO’s Sustainability Policy. Hamkorbank’s activities are deemed to have potential, adverse environmental and social risks and/or impacts. As part of the deal, Hamkorbank will be required to apply the EDFI Exclusion List, Uzbekistan E&S laws and regulations and the IFC Performance Standards Framework for their identified Triggered Transactions. Hamkorbank are also required to implement an ESAP to improve their overall ESMS in line with Uzbekistan legislation and international best practice.
|Total FMO financing
|USD 50.00 MLN
|USD 50.00 MLN
|USD 30.00 MLN
|USD 5.00 MLN
|EUR 0.01 MLN
|USD 15.00 MLN
|UZS 21524.20 MLN
|USD 5.00 MLN
- Website customer/investment
- Europe & Central Asia
- Financial Institutions
- Effective date
- End date
- Total FMO financing
- USD 20.00 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)