Hamkor Bank

complete

The proposed project is a senior loan to Hamkor Bank, a privately-owned commercial bank operating in Uzbekistan. Hamkor Bank’s headquarters are located in Andijan and it has a regional network of 24 branches and outlets across Uzbekistan. The proceeds of the loan will be used for on-lending to private micro (up to USD 10,000), small (up to USD 100,000) and medium-size (up to USD 500,000) enterprises across Uzbekistan. The project will increase financial intermediation in the country by offering medium to long-term debt financing, which will enable Hamkor Bank to meet the financing needs from medium to micro and small-size enterprises alike. The proposed loan will help Hamkor Bank to further expand its outreach to regions outside of the main cities. Further support to Hamkor Bank, the leading private commercial bank in Uzbekistan, is expected to encourage competition in the banking sector of Uzbekistan which is dominated by the state players. The accompanying technical assistance funds will enhance Hamkor Bank’s expertise in lending to larger companies. Hamkor Bank is a leading private joint stock company incorporated in Andijan, Uzbekistan with more than sixteen years of successful track record. Despite a small market share of 1.1% of the total banking sector assets, Hamkor Bank is widely recognised as a leading retail bank with a strong regional presence across Uzbekistan. EBRD has developed a strong relationship with Hamkor Bank and has to date provided it with three loans for a total of USD 8 million under Japan-Uzbekistan Small Business Programme. Senior loan of USD 5 million (EUR 3.6 million equivalent) USD 5 million (EUR 3.6 million equivalent) Hamkor Bank is already implementing EBRD's Environmental Procedures for Small Loans under the existing loan. The bank is required to continue to do so under the proposed operation including compliance with the Environmental Referral and Exclusion Lists and submission of Annual Environmental Report. Technical cooperation (TC) funding of up to USD 200,000 will be sought to accompany the project. Specialised technical assistance will be provided to hire a Senior SME Credit Advisor, who will train SME loan officers, help strengthen the SME Credit Department and assist Hamkor Bank in attaining broad regional and target group coverage by providing SMEs with reliable access to financing. The main rationale for the proposed TC is to encourage Hamkor Bank to meet the growing financing needs of its clients, who have previously benefited under the Japan-Uzbekistan Small Business Programme. TA is aimed at streamlining specific credit analysis and marketing skills and strengthening up appropriate institutional structures for SME lending. Mr. Adhamjon Yuldashev Head of IFIs Relations Department, Hamkor Bank E-mail: hamkorbank@mail.ru