Standard Chartered and the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group have announced a €114 mn financing initiative for Uzbekistan’s largest bank, National Bank of Uzbekistan (NBU). This marks MIGA’s first guarantee against the risk of non-honoring financial obligations by a state-owned enterprise in Uzbekistan, as it was disclosed by Standard Chartered on May 14.
Standard Chartered acted as mandated lead arranger, social loan coordinator, bookrunner, original lender, structuring bank, and facility agent. Landesbank Baden-Württemberg also served as a lender and mandated lead arranger. This collaboration highlights NBU’s commitment to SMEs, vital for Uzbekistan’s economic growth and job creation.
Saif Malik, UK CEO at Standard Chartered Bank, said,
“We are proud to leverage our strong partnership with the National Bank of Uzbekistan and MIGA to encourage a greater flow of private capital for developing the SME sector, a socially impactful project.”
MIGA’s guarantee will help NBU diversify its funding sources beyond traditional development assistance and bilateral channels. The project will also implement an enhanced Environmental and Social Management System (ESMS) for SMEs, incorporating global standards and best practices into NBU’s credit processes. This will enable NBU to manage and monitor risks and impacts associated with subprojects effectively.
Hiroshi Matano, Executive Vice President of MIGA, stated,
“MIGA’s guarantees play a crucial role in bringing much-needed capital to developing countries, facilitating building of a sustainable economy. As our first non-honoring project in Uzbekistan, we are eager to further expand to the country through partnerships with companies like Standard Chartered Bank.”
On May 2, Standard Chartered and NBU officials signed a Memorandum of Collaboration at NBU’s offices in Tashkent, formalizing their commitment to this significant financing project.
MIGA, established in 1988 as part of the World Bank Group, aims to encourage foreign direct investment in emerging markets by mitigating risks such as currency conversion and transfer restrictions, government contract breaches, expropriation, and war and civil unrest. It also offers credit enhancements to private investors and lenders. Since its inception, MIGA has issued over $81 bn in guarantees for more than 1,000 projects in 123 developing countries. In the past decade, MIGA’s guarantees have facilitated new or improved electricity services for over 78 mn people.
Standard Chartered is a prominent international banking group operating in 53 of the world’s most dynamic markets and serving clients in an additional 64. Their mission is to promote commerce and prosperity through our unique diversity. Standard Chartered is publicmly traded on the London and Hong Kong Stock Exchanges.
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