Uzbekistan: Hamkorbank Expanding Access to Credit for Micro, Small and Medium-Sized Enterprise and Agriculture Borrowers Project
The transaction involves a loan of up to the lower of (i) SUM 200,000,000,000; and (ii) the SUM equivalent of $20,000,000 calculated using the spot USD/SUM foreign exchange rate on the signing date to JSCB Hamkorbank (HMK) for the Hamkorbank Expanding Access to Credit for Micro, Small and Medium-Sized Enterprise (MSME) and Agriculture Borrowers project in Uzbekistan.
Private Sector Operations Department
Request for information
8 April 2021
|Project Name||Hamkorbank Expanding Access to Credit for Micro, Small and Medium-Sized Enterprise and Agriculture Borrowers Project|
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Small and medium enterprise finance and leasing
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Bracey, Pamela|
|Description||The transaction involves a loan of up to the lower of (i) SUM 200,000,000,000; and (ii) the SUM equivalent of $20,000,000 calculated using the spot USD/SUM foreign exchange rate on the signing date to JSCB Hamkorbank (HMK) for the Hamkorbank Expanding Access to Credit for Micro, Small and Medium-Sized Enterprise (MSME) and Agriculture Borrowers project in Uzbekistan.|
|Objectives and Scope||The transaction entails the Asian Development Bank providing financing in sum to JSCB Hamkorbank for on-lending to micro, small, and medium-sized enterprises (MSMEs) and agricultural borrowers with [30%] to women borrowers and [80%] to borrowers outside Tashkent.|
|Linkage to Country/Regional Strategy||Access to finance, especially in local currency, has always been challenging in Uzbekistan and has been further exacerbated by the coronavirus disease (COVID-19) pandemic. Because government policy seeks to develop the private sector and reduce the dominance of state-owned enterprises in key segments of the economy, the importance of MSMEs is growing.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The investment is classified as category FI for impacts on the environment. HMK has adopted an environmental and social management system (ESMS) and procedures that meet ADB and national laws requirements. The following will be excluded from ADB's funding: (i) all subloans included in the project prohibited investment activities list; (ii) all subloans for category A activities, or sectors listed in class 1 or class 2 of the ESMS; (iii) all subloans with activities or significant risks as identified in the ESMS Environmental Exclusion Checklist; (iv) all subloans with involuntary resettlement or activities otherwise excluded through the Social Safeguard Screening Checklist in the ESMS; (v) all subloans with mining activities or involving genetically modified organisms; (vi) all subloans with production or trade in cotton or cotton-based textile manufacturing; and (vii) all subloans involving hydropower, thermal power, incinerator plants, or fur farms. HMK will report annually to ADB on ESMS implementation and performance.|
|Involuntary Resettlement||About 96% of these loans were assessed to have Category C impacts on involuntary resettlement, of which 70% are to micro-enterprises and 26% to small and medium-sized businesses. Through the ESMS, HMK excludes subloan having involuntary resettlement impacts from the use of ADB proceeds.|
|Indigenous Peoples||The corporate office and branches of HMK are located in major cities and towns. No ethnic minorities in the area of HMK operations can be classified as Indigenous Peoples, as defined in the SPS, and on-lending to MSMEs does not directly or indirectly benefit or target such groups.|
|Stakeholder Communication, Participation, and Consultation||Stakeholder consultation requirements will depend on the potential risks and impacts of the proposed subloans. Information on HMK and its financial products is accessible by all interested individuals and groups from the company branch offices, website, and social media accounts. HMK continues to implement stakeholder engagement activities through its customer relationship managers, market research, and ongoing grievance redress mechanism embedded in its operations.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||03 Mar 2020|
|Credit Committee Meeting||09 Mar 2021|
|Approval||08 Apr 2021|
|Last PDS Update||16 Aug 2021|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Hamkorbank Expanding Access to Credit for Micro, Small and Medium-Sized Enterprise and Agriculture Borrowers Project: FAST Report||Faster Approach to Small Nonsovereign Transactions||Apr 2021|
|Hamkorbank Expanding Access to Credit for Micro, Small and Medium-Sized Enterprise and Agriculture Borrowers Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jan 2021|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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ADB and JSCB Hamkorbank Sign $20 Million Loan to Support MSMEs and Agriculture in UzbekistanThe Asian Development Bank (ADB) and JSСB Hamkorbank signed a loan for $20 million equivalent in Uzbek sum to expand access to credit for micro, small, and medium-sized enterprises (MSMEs) and agricultural. . .