MFP-Catalytic FLG IYB

pending

The proposed investment is an unfunded risk-sharing facility in the form of a financial guarantee (“the Facility”) between IFC and Ipak Yuli Bank (“IYB” or “the Bank”) in Uzbekistan, providing first-loss and second loss risk coverage for a new MSME loan portfolio of up to US$100 million to microenterprises, women-owned businesses, and climate-related projects meeting pre-agreed eligibility criteria. The total first-loss amount will be up to US$10 million equivalent, with IFC (for its own account) covering 90% (up to US$9 million equivalent), which is supported by IFC as Implementing Entity of the IDA20 IFC-MIGA Private Sector Window Blended Finance Facility (“IDA PSW BFF”); and IYB covering 10%. The second-loss tranche of US$90 million equivalent will have IFC's pari passu share capped at US$9 million equivalent, with the balance borne by IYB. Thus, IFC's maximum overall risk amount under the Facility will be up to US$18 million equivalent, representing the aggregate of the IFC first loss maximum risk amount and the IFC second loss maximum risk amount. IFC's catalytic investment will provide support in helping to unlock core mobilization of about 9x and help scale up lending for MSMEs in Uzbekistan (the Project).The Project will be processed under the Catalytic First Loss Guarantee envelope (“Catalytic FLG”) under the MSME Platform, to expand lending to higher-risk and underserved MSME segments, thereby promoting financial inclusion and contributing to a more inclusive and resilient MSME ecosystem. The Catalytic FLG benefits from the support of IDA PSW BFF in PSW eligible countries, including Uzbekistan. [IDA PSW BFF was created by the Word Bank Group to catalyze private sector investment in IDA countries, with a focus on fragile and conflict affected states.]