GEFF II Uzbekistan - Ipak Yuli Bank Loan I

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision a loan (GEFF II Loan I) of up to US$ 20 million equivalent to Ipak Yuli Bank, a major private bank in Uzbekistan, under Uzbekistan Green Economy Financing Facility II (GEFF II Uzbekistan). The proceeds of the loan will be on-lent to eligible sub-borrowers implementing qualifying sub-projects in line with the technical and financial eligibility criteria set in the policy statement for the GEFF II Uzbekistan.

Project ID 54525

Status Repaying

Location

Uzbekistan

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Dilaziz Sultanov
d.sultanov@ipakyulibank.uz
+998 (78) 140-69-43
+998 (78) 140-69-05
http://www.ipakyulibank.uz/
2, Abdulla Qodiriy Street, Tashkent, Uzbekistan

Project ID 54525

Status Repaying

Location

Uzbekistan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

28 Nov 2023

Disclosure date

19 Oct 2023

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

Project objectives

The GEFF II Loan I will contribute towards building a green economy in Uzbekistan by facilitating the expansion of energy efficiency investments in a gender responsive way. The Project builds on the successful implementation of previous green financing operations with Ipak Yuli Bank and will scale up the bank's green activities. Ipak Yuli Bank will benefit from a comprehensive technical assistance (TC) to further strengthen the internal capacity for financing green projects.

Transition impact

ETI Score:85

ject will contribute to the Green TI quality in line with the GET TI rating methodology, with 100 per cent of the use of proceeds allocated to GET activities. The Loan will contribute towards building a green economy in Uzbekistan by facilitating the expansion of energy efficiency investments, in a gender responsive way, and providing positive demonstration effects of such projects, through on- lending to private sector sub-borrowers.

Ipak Yuli Bank has committed to development and implementation of a transition plan in order to improve its business practices in relation to climate risk management and aligning of their financial flows with the goals of the Paris Agreement. The transition plan will set out time-bound targets, actions and milestones through which Ipak Yuli Bank will improve its business practices in relation to climate risk management, progressively leading to the alignment of its financing.

Client information

IPAK YULI JOINT-STOCK INNOVATION COMMERCIAL BANK

Ipak Yuli Bank is a leading privately-owned bank in Uzbekistan with focus on MSME and retail segments. With a market share of 2.5 per cent, Ipak Yuli Bank is the fourth largest by assets private bank in Uzbekistan out of 25 private banks.

EBRD Finance Summary

USD 18,000,000.00

A three-year senior unsecured loan of up of up US$ 20 million equivalent in the synthetic local currency in two equal tranches will be financed from EBRD own sources (US$ 18 million) and from the EBRD's Crisis Response Special Fund (CRSF) (US$ 2 million, concessional financing).

Total project cost

USD 20,000,000.00

Additionality

Financing Structure: The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a tenor, possible financing in the local currency.

Such financing is necessary to structure the project.

Innovative financing structures and/or instruments: The terms and conditions of the Loan go significantly beyond those required by the providers of commercial sources of funding inter alia by offering a comprehensive TC package. They are designed to promote GET compliant investments and sustainable lending practices, in a gender responsive way. Sub-borrowers will be engaged

in energy and climate audits, minimum performance standards of technologies, climate-related strategies and policies, monitoring, reporting and verification systems etc.

Standard-setting: Ipak Yuli Bank will make use of the EBRD expertise in energy and resource efficiency and climate resilience financing to be provided via energy and climate audits, minimum performance standards of technologies, climate-related strategies and policies, monitoring, reporting and verification systems etc.

Environmental & Social Summary

Categorised FI (ESP 2019). Ipak Yuli Bank is an existing client and Environmental and is subject to regular Social Due Diligence (ESDD). The annual environmental and social report submitted by Ipak Yuli Bank (2022) confirmed its compliance with PRs 2, 4 and 9. Ipak Yuli Bank will be required to continue to comply with the EBRD's PRs 2, 4 and 9 and submit Annual E&S Reports and implement the EBRD's E&S Procedures for Corporate, SME and Micro Lending. The Project is determined Paris aligned based on the application of the Bank's Paris alignment methodology for indirect finance. Ipak Yuli Bank will also be required to implement the E&S Eligibility Criteria for Renewable Energy Projects, as applicable for each sub-project. GEFF II Loan I is consistent with the Green Economy Transition (GET) approach and the GET share is 100 per cent.

Technical Cooperation and Grant Financing

Ipak Yuli Bank will benefit from a comprehensive technical assistance to strengthen the internal capacity for financing GET projects. The Bank will provide know-how and toolkit to help Ipak Yuli Bank with the design and implementation of necessary procedures to originate and finance green projects.

TC: Up to €3.4 million has been dedicated to support the implementation of the GEFF II Uzbekistan. There is no specific TC allocation for each participating bank. TC support is provided by the Climate Investment Special Fund (CIF SCF), the EBRD Shareholder Special Fund (SSF) and Action For Equality and Gender Multi-Donor Cooperation Fun (A4EG).

Non-TC: Concessional finance of up to US$ 2m (the CRSF co-financing) will be blended with the EBRD finance of up to US$ 18m.

Company Contact Information

Dilaziz Sultanov
d.sultanov@ipakyulibank.uz
+998 (78) 140-69-43
+998 (78) 140-69-05
http://www.ipakyulibank.uz/
2, Abdulla Qodiriy Street, Tashkent, Uzbekistan

PSD last updated

19 Oct 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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GEFF II Uzbekistan - Ipak Yuli Bank Loan I

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)