National Bank of Uzbekistan (MIGA-15227)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Uzbekistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 26, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Standard Chartered Bank, JSC National Bank for Foreign Economic Activity of Uzbekistan
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 165.75 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 152
Converted using 2024-01-19 exchange rate.
Project Cost (USD)
$ 165.75 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 152
Converted using 2024-01-19 exchange rate.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Apr 13, 2024

Disclosed by Bank Jan 19, 2024

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Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the MIGA, this summary covers a loan by Standard Chartered Bank of the United Kingdom and/or any of its subsidiaries, and other potential lenders yet to be identified to the Joint-stock company "National Bank for Foreign Economic Activity of the Republic of Uzbekistan" (NBU). SCB has applied for a MIGA guarantee of up to EUR [152.0] million for a period of up to 10 years against the risk ofNon-Honoring of Sovereign Financial Obligations of a State-Owned Enterprise.

The proceeds of the MIGA-covered Loan will be used by NBU as direct financing to support its Small and Medium Enterprises in various sectors, includingtrade finance, to develop the service sector,and manufacturing. The proposed Project would be MIGA's first non-honoring transaction in Uzbekistan and also the first with NBU. The Project will support NBU's efforts to expand servicingthe underserved SMEs segment, which plays a pivotal role in Uzbekistan's growth and job creation.

NBU provides retail, SME, and corporate finance services to clients in Uzbekistan. The Project will support lending to SMEs.

As of November 2023, NBU's portfolio included the following business segments - corporate loans, 71%, SME loans, 16%, and retail loans (mortgages and consumer loans), 13%. The main sectors supported include manufacturing, transport and communication, services, trade and agriculture.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to the MIGA, SME transactions are typically considered low to medium-risk transactions, with environmental and social risks and impacts that can be addressed through mitigation measures. This project has thus been categorized as FI-2 in accordance with MIGA’s Policy on Environmental and Social Sustainability (2013).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Standard Chartered Bank operates as a bank. The Bank provides savings account, loans, mortgages, credit cards, insurance, and investment services. Standard Chartered serves customers worldwide.

As stated on the company's website, the National Bank for Foreign Economic Activity of the Republic of Uzbekistan was established by Decree of the first President of our country I. Karimov in September 1991. The Ministry of Economy and finance of the Republic of Uzbekistan and the Fund for Reconstruction and Development of the Republic of Uzbekistan are the shareholders of NBU JSC. 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No project contacts provided at the time of disclosure.

Guarantee Holder - Standard Chartered Bank:

Address: Standard Chartered Bank, 1 Basinghall Avenue, London, EC2V 5DD
Phone: +44 (0)20 7885 8888
Website: https://www.sc.com/en/

Financial Intermediary/Guaranteed Institution - JSC "National Bank for Foreign Economic Activity of the Republic of Uzbekistan":

Address: 100084, Republic of Uzbekistan, Tashkent, Amir Temur Avenue, 101
Email: support@nbu.uz
Phone: +998781480010
Website: https://nbu.uz/en/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works