IFC has signed an agreement with Ipak Yuli Bank to provide a syndicated loan of up to $42 million, aimed at increasing access to financing for small businesses and women entrepreneurs across Uzbekistan. With 25 percent of funding earmarked for women-run businesses, this initiative is part of IFC’s broader efforts to promote inclusive economic development and empower small-scale entrepreneurs, who often need to grow their businesses. There are significant challenges in getting loans.
The $42 million syndicated loan is the first tranche of a larger financing package totaling $72 million. This initial phase includes a $20 million loan from IFC’s own account and an additional $22 million from impact investors such as Invest in Visions and the ILX Fund. The remaining $30 million financing package is expected to be completed by the end of 2024.
Micro, small and medium enterprises (MSMEs) contribute more than 50 percent of Uzbekistan’s gross domestic product, yet many struggle with limited access to financing. The credit gap facing these businesses is about $11.8 billion.
“Small businesses are the engine of economic growth, but too many—especially women-owned small businesses—struggle to access financing. Thanks to this collaboration with IFC, our bank is helping existing and new MSME customers, and especially will be able to provide support to women-led businesses with affordable loans”, said Seyedbror Seyedkhmidov, Chairman of the Management Board of Ipak Yuli Bank.
The investment represents a continuation of IFC’s collaboration with Ipak Yuli Bank, a relationship that began in 2018. Since then, IFC has provided the bank with $20 million in financing to support small enterprises, including women-owned enterprises and micro and small businesses. Trade
“IFC’s loan to Ipak Yuli Bank is in line with our commitment to promote sustainable and inclusive economic growth in Uzbekistan. By supporting small businesses and women entrepreneurs, IFC aims to promote entrepreneurship, expand companies and create jobs.” is to enable the creation of much-needed opportunities,” Wiebke said. Schlommer, IFC Director for Turkey and Central Asia.
In addition to financing, IFC will provide strategic advisory support to Ipak Yuli Bank. The assistance will focus on helping the Bank expand its product and service offerings to better meet the needs of MSME clients, including women-owned MSMEs, and drive sustainable growth.