The European Bank for Reconstruction and Development (EBRD) has announced a $10mn loan to Uzbekistan's Credit Asia chain of household appliance stores. This financial support aims to facilitate the expansion and development of Credit Asia’s retail operations.
The loan, detailed on the EBRD’s website, will be disbursed in two equal tranches of $5mn each. The funding will support the companies within the group, Sifat Biznes Savdo and Oson Texnik Kredit, in their efforts to expand sales and enhance their market presence. Specifically, the funds will be used to replenish the group’s working capital, allowing them to open new physical locations and develop a robust online sales platform.
The EBRD’s investment is expected to bolster Credit Asia’s competitiveness in the household appliance market. By leveraging economies of scale, the group aims to reduce operating costs and increase efficiency. Additionally, the expansion plans include efforts to ensure employment opportunities are available in regions where Credit Asia currently has no presence, promoting regional employment equality.
This loan marks a continuation of EBRD’s support for Uzbekistan's retail sector. In September 2022, the EBRD provided loan guarantees to another household appliance distributor, Idea. This earlier initiative involved a loan of UZS 44 bn ($3.5mn) allocated by SQB, with the EBRD covering 50% of the associated risks.
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