Purpose of the Credit Line

Development of Rural Entrepreneurship

Eligible Borrowers

Micro, Small, and Medium Enterprises (MSMEs)

Financing Currency

Uzbekistani Sum (UZS), US Dollars (USD)

Financing Structure

Funding is provided through two sub-lending windows:

• General Sub-Lending Window – Sub-loans up to $500,000 USD can be allocated through this window, which must account for 70% of the total credit line. This window also includes loans for projects with climate-optimized aspects(implementation of energy-efficient technologies and renewable energy sources).

• Microfinance Sub-Lending Window – Small sub-loans up to $50,000 USD are issued through this special microfinance window, which must account for 30% of the total allocated sub-loans.

Maximum Loan Amounts (for Investment Projects)

Up to $500,000 USD

Maximum Loan Amounts(for Working Capital Needs)

Up to $125,000 USD

Maximum Loan Terms

Investment Loans: Up to 10 years, with a grace period of up to 36 months.

Working Capital Loans: Up to 24 months, with a grace period of up to 9 months

Project Initiator's Contribution

30%

Loan Interest Rates (In USD)

SOFR (6 months) + variable spread + 1% (Republic of Uzbekistan margin) + bank margin (resource-related costs + minimum profit)

Loan Interest Rates (In UZS)

Central Bank of Uzbekistan base rate + bank margin (resource-related costs + minimum profit)

Environmental and Social Governance (ESG) Requirements

Compliance with all environmental and social standards of the Republic of Uzbekistan and the World Bank's environmental protection regulations is mandatory. 50% of the total sub-loans must be allocated to projects with climate-conscious investments

Country Restrictions for Goods, Services, and Equipment Procured with Loan Funds

No restrictions, except for sanctioned countries.

Loan Collateral Requirements

Determined in accordance with the bank's lending policies

Project

Modernization of Agriculture in the Republic of Uzbekistan (UP-4803)

Purpose of the Credit Line

Financing all agricultural sectors, excluding cotton and grain cultivation.

Regions Eligible for Credit Line Utilization

All regions of the Republic of Uzbekistan

Loan Amounts (Minimum & Maximum) per Project

• For agricultural cooperatives and associations: $1,000 USD

• For financing an integrated value chain within agro-industrial clusters and efficient cooperation: $2,000 USD

• For working capital replenishment: Up to $250,000 USD

• No specific minimum loan amount

Loan Currency

Uzbekistani Sum (UZS) or US Dollars (USD

Maximum Loan Term

For investment purposes: Up to 120 months (10 years)

For working capital replenishment: Up to 18 months

Average Loan Term

7 years

Grace Period

2 years

Cost of foreign credit resources (IFIs/Inobank, Ministry of Finance) %

70%

Commission (Premium) of ECA (for risk), one-time payment

-

Total (cumulative) assumed annual interest rate

In USD: SOFR (6 months) + variable spread + 5% (Interest is considered variable and is currently 12%)

In local currency: refinancing rate of the Central Bank of Uzbekistan +6% (Interest is considered variable and is currently 20% (14+6=20)).

Purpose of credit line utilization

Development of rural entrepreneurship in the Fergana Valley:

- Cultivation and processing of agricultural products;

- expansion of the service system in rural areas;

- in the direction of tourism and handicrafts development

Area of application

Andijan, Namangan and Fergana regions

Currency of financing

Uzbekistani sum (UZS), US dollars (USD

Maximum amount

For investment projects: Up to $125,000 USD
For cluster financing: Up to $2,000 USD

For working capital replenishment: Up to $200,000 USD

Interest Rates

In USD: LIBOR (6 months) + 6.1%, with a minimum annual rate of 8.0%.

In UZS: Central Bank of Uzbekistan Refinancing Rate + 8.0%, with a minimum annual rate of 20.0%.

Maximum Loan Term

- for investment projects-120 months, with a grace period of up to 36 months);

- for working capital replenishment-18 months, with a grace period of up to 9 months.

* loan term and grace period depend on the nature of the project and TIA/business plan indicators

for the useful life (amortization period) of the purchased goods

Advantages of a line of credit

In accordance with the Decree of the President of RUz No. PP-3857 “On measures to improve the efficiency of preparation and implementation of projects with the participation of international financial institutions and foreign governmental financial organizations”, goods (works, services) purchased at the expense of IFIs are exempted from tax and customs payments until July 01, 2021.

Requirement for countries of production of goods, services and/or equipment purchased at the expense of the credit

No restrictions (except sanctioned countries)

Credit security

In accordance with the Bank's credit policy

Project

Diversification and modernization of agriculture in the Republic of Uzbekistan

Purpose (sphere) of credit line funds channeling

Entrepreneurship development (except for construction enterprises, purchase of special equipment, trade finance)

Regions in which the use of credit line facilities is authorized

Andijan, Fergana, Namangan oblasts

Minimum and maximum loan amount (per allocated loan for each project)

Farmers and dekhkan farms - funds in the equivalent of $10,000 to $500,000;

For young entrepreneurs - funds in the equivalent of $5,000 to $50,000.

Currency of financing

National currency, USD

Maximum term of the loan disbursed at the expense of the credit line

For investment purposes up to 120 months;

For working capital replenishment up to 18 months

Average term on loans allocated at the expense of this credit line (based on the bank's loan portfolio)

6 years

Grace period on the loan

2 years

Cost of foreign credit resources (IFIs/Inobank, Ministry of Finance) %

70%

ECA Fee (Premium) (risk), one-time payment

-

Total (cumulative) assumed annual interest rate

In US Dollars - at least 7.0%;

In local currency - refinancing rate of the Central Bank of the Republic of Uzbekistan +5.0%; (Interest rate is considered variable and currently amounts to 18.5% (13.5+5=18.5%)).

Country of origin of goods, services and/or equipment purchased with the credit

All States except those on the sanctions list

Project

Financing of sustainable development of livestock sector in Uzbekistan

Purpose (scope) of the credit line

The credit line is available to sub-borrowers, including agricultural enterprises, SMEs, livestock integrators (such as feed producers, milk processors, poultry farms, etc.), as well as cooperative clusters, public (ministries or commissions) and private enterprises (including equipment suppliers and livestock product distribution networks) providing services (veterinary, consulting, phytosanitary control, laboratories, etc.).

Regions in which the use of credit line facilities is authorized

All regions of Republic of Uzbekistan

Minimum and maximum loan amount (per allocated loan for each project)

Maximum amount - funds in the equivalent of EUR 1,000,000, minimum amount - not provided;

For replenishment of working capital for the enterprises of the above-mentioned direction - funds in the equivalent of EUR 200.0 thousand.

Funding currency

National currency

Maximum term of the loan disbursed at the expense of the credit line

For investment purposes up to 120 months;

For working capital replenishment up to 18 months

Average term on loans allocated at the expense of this credit line (based on the bank's loan portfolio)

7 years

Grace period on the loan

2 years

Cost of foreign credit resources (IFIs/Inobank, Ministry of Finance) %

70%

ECA Fee (Premium) (risk), one-time payment

-

Total (cumulative) assumed annual interest rate

In national currency - refinancing rate of the Central Bank of Uzbekistan +5.0%; (Interest is considered variable and is currently 19% (14+5=19))

Country of origin of goods, services and/or equipment purchased with the credit

All States except those on the sanctions list

Requirements (possibilities) for collateral

Executed on the basis of the internal Regulations of the bank

Revolving credit facility (revolving/non-revolving)

Revolving

Customer (segment)

Small and medium-sized businesses (Entrepreneurial entities operating with and without the status of a legal entity)

Customer account number

Primary

Leasing forms

Leasing can take place in direct form, in which its three subjects participate, and in reversible form, in which one person participates as lessee and seller.

Leasing object

Not provided for property complexes, buildings, equipment, special machinery and vehicles (land plots and other natural objects, as well as other assets withdrawn from turnover or limited turnover, old machinery and old vehicles).

Currency

National currency (Sum)

Funding source

At the expense of the bank's own funds / At the expense of other funds;

Product presentation form

Bank transfer to seller's account

Amount

Up to 100 000 000 000 000 (One hundred billion) UZS, but in the amount not exceeding 80% of the leasing object value

Term

At the expense of the bank's own funds - For a term not exceeding 80% of the service life of the leased object, but not less than 12 months and not more than 60 months;

At the expense of other funds - Based on the terms of attracted funds (however, for a term not exceeding 80% of the service life of the leased object)

Grace period

At the expense of the bank's own funds - up to 12 months;

At the expense of other funds - based on the conditions of the involved funds

Interest rate

27% (CBR rate + 13%)

Concepts

Lessor - a person taking possession of the leased object with the purpose of transferring it to the lessee on the basis of the lease agreement, i.e. a bank;

Lessee - a person who receives the leasing object for ownership and use under the lease agreement;

Seller - a person selling the leased item to the lessor, i.e. the bank;

Interest calculation conditions

Interest is accrued daily at a fixed rate. repaid according to a set schedule.

Maturity of principal and interest payments

At the expense of the bank's own funds: Principal debt - monthly after the end of the grace period; Interest payment - monthly;

At the expense of other borrowed funds - based on the terms of borrowed funds;

Customer (segment)

Small and medium-sized businesses (Entrepreneurial entities operating with and without the status of a legal entity)

Subsegment

Cotton raw material producers (farms and other agricultural enterprises), seed farms, and cotton textile clusters that have entered into futures contracts with cotton textile clusters.

Customer account number

Primary

Product Purpose

It is used to finance the costs of growing cotton raw material, finance the costs of harvesting cotton raw material, and finance the final estimated costs of purchasing cotton raw material.

Currency

National currency (UZS)

Funding source

Financing source is the funds attracted from the State Fund for Support of Agriculture under the Ministry of Economy and Finance of the Republic of Uzbekistan (hereinafter - the Fund).

Credit method

Through closed credit line

Product presentation form

Money order

Raw cotton value

The value is based on normative soil productivity (hundredweight/ha) and published price in relation to one credit point. (This indicator is used in the credit allocation process to finance the final costing of raw cotton production and crop procurement). This information is posted in the IT “Agroplatform” and this information is used by commercial banks.

Price (to be announced)

The latest quotes for cotton fiber futures on the New York Stock Exchange Information on the average quote for 12 months will be posted on the official website of JSC “Commodity Exchange of the Republic of Uzbekistan”.

Loan term, grace period, amount and interest rate

• a loan of up to 60% of the cost of cotton raw material at an annual rate of 10% for 14 months, with a grace period of 12 months. cotton production costs for cotton producers and seed farms;

• loan for 24 months for cotton-textile clusters owning land for the cost of cotton production (repayment of the loan starts from the 19th month), grace period for 18 months and repayment in equal installments during the last 6 months, cotton provides a loan up to 60% of the cost of raw cotton at an annual rate of 10%;

• provides a 3-month loan of up to 20 percent of the value of raw cotton at 10 percent interest at 10 percent to credit seed farms' cotton harvesting expenses;

• up to 20 percent of the cost of raw cotton, with the condition of repayment in equal installments over the last 9 months, for a period of 12 months, with a grace period of 3 months, to offset the costs of cotton harvesting cotton cotton cotton-textile clusters owning a land plot allocate credit at 10%;

• up to 80 percent of the cost of cotton raw material (of which 20 percent is cotton harvest) to offset the final settlement of cotton raw material purchases of cotton-textile clusters for a period of 10 months, with a grace period of 6 months and with the condition of repayment in equal installments during the last 4 months of expenses), allocates credit at an annual rate of 10%.

Interest accrual terms

Interest is accrued daily at a fixed rate and amortized according to a fixed schedule.

Principal and interest payment term

Principal debt - every month after the end of the grace period; Interest payment - monthly;

Customer (segment)

Small and medium-sized businesses

Client account number

Primary

Credit method

Through closed credit line

Product purpose

To finance investment projects and replenish working capital in all sectors of agriculture (except cotton and grain farming)

Currency

National currency (Sum)

Foreign currency (US Dollar)

Funding source

Funds received from the International Fund for Agricultural Development

Product presentation form

By transferring money to the account of the supplier of products (service provider, beneficiary)

Amount

From $10,000 to $500,000 for farming and agricultural businesses;

From $5,000 to $50,000 for youth.

Term

1. To finance investment projects - up to 120 months (From the payback period of the project

By origin);

2. For working capital replenishment - up to 18 months.

Grace period

1. For financing investment projects - up to 36 months (From the project);

2. To replenish working capital - up to 6 months, and at the expense of the bank's own funds - up to 36 months;

At the expense of other funds - 6 months.

Interest rate

In national currency - in the amount of the key rate of the Central Bank of the Republic of Uzbekistan + 7.0% (bank margin);

In US dollars - in the amount of 10%.

Interest accrual conditions

Interest accrues daily at a fixed rate and amortizes on a fixed schedule.

Maturity of principal and interest payments

Principal - every month after the end of the grace period; Interest payment - monthly;

Customer (segment)

Small and medium-sized businesses

Customer account number

Primary

Credit method

Through a closed credit line

Product purpose

To finance investment projects and replenish working capital in all sectors of agriculture (except for cotton and grain cultivation)

Currency

National currency (UZS)

Foreign currency (US Dollar)

Funding source

Funds received from the International Fund for Agricultural Development

Presentation of goods

By transferring money to the account of the supplier of products (service provider, beneficiary)

Amount

From $10,000 to $500,000 for farming and agricultural enterprises;

From $5,000 to $50,000 for youth.

Term

1. For financing investment projects - up to 120 months (based on the payback period of the project);

2. To replenish working capital - up to 18 months.

Grace period

1. For financing investment projects - up to 36 months (based on the project);

2. For working capital replenishment - up to 6 months.

Interest rate

In national currency - in the amount of the key rate of the Central Bank of the Republic of Uzbekistan + 7.0% (bank margin);

In US dollars - in the amount of 10%.

Interest accrual terms

Interest is accrued daily at a fixed rate and amortized according to a fixed schedule.

Principal and interest payment period

Principal - every month after the end of the grace period; Interest payment - monthly;