FIF - YiB Programme for CA - DAVR Bank

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior loan of US$ 15 million equivalent to Davr Bank to be used for on-lending to eligible youth-led/owned micro, small and medium-sized enterprises (MSMEs) in Uzbekistan.

Project ID 55440

Status Disbursing

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

General Enquiries
info@davrbank.uz
+998 71 207-40-40
www.davrbank.uz
Block A, Navoi - Zarkaynar Street. Tashkent, 100021 The Republic of Uzbekistan

Project ID 55440

Status Disbursing

Location

Uzbekistan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

02 Apr 2024

Disclosure date

08 Apr 2024

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

The provision of a senior loan of US$ 15 million equivalent to Davr Bank to be used for on-lending to eligible youth-led/owned micro, small and medium-sized enterprises (MSMEs) in Uzbekistan.

Project objectives

The loan will enable DAVR Bank to finance youth-led/owned businesses in Uzbekistan. The bank will benefit from comprehensive TC support to develop an internal capacity for financing youth-led businesses and to contribute to the improvement in access to finance for young entrepreneurs in Uzbekistan.

Transition impact

ETI Score:71

As part of the Central Asia YiB Programme, the YiB Loan to DB will contribute to the overall Programme objectives and support the Inclusive and Competitive qualities. The facility is expected to increase lending to young people, support DB's capacity building and promote skills transfer for young business owners/managers.

Client information

DAVR BANK PJSCB

DAVR Bank ("DB") is a privately-owned bank in Uzbekistan with focus on MSME and retail segments. As of end of 2023, DB was ranked 16th by loan portfolio among 35 banks in the country and held a market share of 0.9 per cent by total assets.

EBRD Finance Summary

USD 15,000,000.00

Total project cost

USD 15,000,000.00

Additionality

Additionality will be achieved through the following:

(1) An innovative financing structure as the project will benefit from Results-Based Compensation (RBC).

(2) Financing structure with the EBRD providing the much-needed medium-term financing, potentially in synthetic UZS.

(3) Capacity building as the financing will be accompanied by advisory support and training for DB and youth MSMEs.

(4) Standard setting with DB raising its inclusive financing standards by generating a better understanding of the needs of young entrepreneurs.

(5) Gender SMART - at least 30% of the EBRD loan is expected to be lent to women youth MSMEs.

Environmental & Social Summary

Categorised FI (ESP 2019). Davr Bank is an existing client of the Bank and provided an updated Environmental and Social Policy (2020), ESMS and AESR (2022) demonstrating their compliance with PR2, 4 and 9. Davr Bank will be required to continue to comply with the applicable PRs, the EBRD's Environmental and Social Risk Management Procedures for SME and Micro Loans, national HSE laws and regulations and submit annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing

Technical Cooperation ("TC")

The Central Asian Youth in Business ("YiB") Programme ("Programme") includes two linked TC components:

(i) tailored capacity-building for participating financial institutions:
Funding source: SSF.
Amount/currency: € 4.0 million at the Programme level.

(ii) capacity-building for Youth MSMEs via the Advice for Small Businesses ("ASB") Programme:
Funding source: SSF.
Amount: € 6 million at the Programme level.

Non-TC Component

(i) a Results-based Compensation ("RBC") in favour of the bank of up to 3% of the EBRD's Loan (up to USD 450,000) to partially compensate the bank for the up-front investments related to building a sustainable YiB lending expansion.

Funding source: SSF.

Amount: USD 450,000.

Company Contact Information

General Enquiries
info@davrbank.uz
+998 71 207-40-40
www.davrbank.uz
Block A, Navoi - Zarkaynar Street. Tashkent, 100021 The Republic of Uzbekistan

PSD last updated

08 Apr 2024

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.

Environmental and Social Documentation is not available for this project.

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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FIF - YiB Programme for CA - DAVR Bank

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)