Ipoteka Bank OTP Group has strengthened its presence in Uzbekistan’s energy sector with a $60mn loan agreement with Uzbekneftegaz. The three-year working capital facility is expected to bolster operations at one of the nation’s largest oil and gas companies and support Uzbekistan’s ongoing economic reforms said Ipoteka Bank's Irakli Elashvili in an interview with Daryo.
“This financing agreement contributes to the further development of Uzbekistan’s economic reforms,” said Elashvili, Advisor to the Management Board of Ipoteka Bank OTP Group. “We’re proud to become the largest local private bank partner of Uzbekneftegaz JSC.”
Uzbekneftegaz and Its Role in Uzbekistan’s Energy Sector
Established in 1992, Uzbekneftegaz plays a pivotal role in Uzbekistan’s energy landscape, focusing on hydrocarbon production, petrochemical manufacturing, and exporting refined petroleum products. According to Elashvili, the company’s strong commitment to transparency, demonstrated by its Eurobond issuance, has made it an ideal partner for Ipoteka Bank.
“Uzbekneftegaz is a new client for Ipoteka Bank and a very significant player in the market,” Elashvili said. “Their financial transparency is exceptional, and this makes us very confident in this collaboration. This deal also reflects the rigorous standards OTP Group applies to all its transactions.”
He added, “We worked closely with Uzbekneftegaz to understand their needs and tailored this loan to support their working capital requirements. Completing this deal just before the New Year, during such a busy period, is a major achievement for all parties involved.”
Diversification and Future Focus
The loan represents one of Ipoteka Bank’s largest transactions this year and is part of its efforts to diversify across various sectors. “Energy is a critical sector for the economy, and we intend to continue supporting it,” Elashvili stated. “But we also have exciting projects in other industries, which we’ll share in the new year. Diversifying our sector focus remains a priority for the bank.”
When asked about Ipoteka Bank’s future direction in energy, Elashvili noted, “This loan is not tied to green financing, but we’re seeing increasing interest globally in energy companies transitioning toward sustainability.”
Private Sector’s Role in Uzbekistan’s Economic Growth
Elashvili emphasized the importance of private and international players in supporting Uzbekistan’s privatization efforts. “Uzbekistan’s privatization process is key to economic growth. As the first international financial institution in the market, OTP Group brings global expertise and rigorous client assessment standards that benefit not only our clients but the entire economy,” he said.
Speaking on the need for more private banks int he Uzbek market Elashvili explained, “Having more private and international banks in Uzbekistan would allow us to jointly finance larger projects. With our Western expertise and standards, we’re helping to transform the market into a more competitive and globally aligned financial system."
He also pointed to the advantages of competition, saying, “With our Western expertise, we’re helping to align Uzbekistan’s financial sector with global standards. The presence of more private and international players will benefit the economy and bring greater transparency to the market.”
Looking ahead, Ipoteka Bank remains committed to supporting Uzbekistan’s growth. “This deal gives us a strong start to the new year,” Elashvili concluded. “We’re excited to build on this momentum and further contribute to the country’s economic development.”
Watch the interview:
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