Uzbek Leasing 3

completed

The project is to provide a loan to Uzbek Leasing International A.O. (Uzbek Leasing or the company), an existing IFC client that has been providing medium term financial leases for industrial equipment and machinery. The company''s clients are small and medium size private enterprises (SMEs), the growth of which is critical for the development of Uzbekistan''s economy. As of March 31, 2008 the company’s net investment in finance leases amounted to $9.5 million. Uzbek Leasing has profitable operations - in 2007 the Company secured return on average assets of 8.7% and return on average equity of 13.9%. Prospects for developing a well-diversified leasing business in Uzbekistan are regarded as good, as demand has been strong both from SMEs and individual entrepreneurs. However, insufficient funding has been an obstacle to expand operations. The loan will address the company’s critical need in funding to continue expanding its leasing portfolio to ensure its sustainability. International best practices that will be further implemented will help set standards in the country’s leasing industry and have a demonstration effect. IFC would play an important developmental role by providing Uzbek Leasing with additional longer term resources for originating leases to SMEs so that the latter can implement investment plans and modernize existing facilities.The new investment is processed under the IFC Azerbaijan-Central Asia Leasing Facility (ACALF).