Proposed Equity Investment Joint-Stock Commercial Bank Ipak Yuli

Date: September 2012
Country:
Subject:
Document Type: Reports and Recommendations of the President
Project Number: 41953-014

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Description

This report and recommendation of the president for the proposed Equity Investment Joint-Stock Commercial Bank Ipak Yuli in Uzbekistan describes the terms and conditions for the approval of ADB's Board of Directors. 

The proposed equity investment in Ipak Yuli of up to $6 million (in sum equivalent) will be financed from ADB's ordinary capital resources. ADB will not be the single largest shareholder in Ipak Yuli. The investment will represent approximately 15% of issued capital.

Through its equity investment, ADB will provide systemic support to the banking sector at a critical point in its development, strengthening financial intermediation and helping to promote confidence in the banking system. The equity investment in Ipak Yuli will lend key support to the sector by promoting the adoption of strengthened operating policies and procedures based on international best practice standards, particularly in the areas of corporate governance, internal controls, risk management, credit risk management, environmental and social safeguards, and anti-money laundering/anti-corruption.