VTB Group grants landmark umbrella financing supported by a guarantee of the Republic of Austria to JSCB "Uzpromstroybank"
Acting as mandated lead arranger, original lender and ECA Agent, VTB Bank (Europe) SE has provided EUR-denominated financing in the amount of EUR 15,6 mln to the Uzbek Industrial and Construction Bank (Uzpromstroybank). The financing is supported by a guarantee of the Republic of Austria, acting through its export credit agency — Oesterreichische Kontrollbank AG (OeKB). This umbrella financing is aimed to support the trade between Austria and Uzbekistan and to increase Austrian trade flows to Uzbekistan, which is one of the most dynamically developing countries in the CIS region.
This landmark deal is the first OeKB-covered transaction with such an innovative structure in the Uzbek market. The umbrella solution, provided to the client as part of its funding diversification initiative, allows for more flexibility and access to tight ECA pricing. It targets smaller trade contracts that are usually not structured under ECA cover due to their size. Its main goal is to increase the amount of business opportunities for SMEs in this dynamically growing region.
Arthur Iliyav, Chairman of the Board at VTB Bank (Europe) SE, said: “Being one of the key partners of Uzpromstroybank in trade finance solutions, VTB Bank (Europe) SE is proud to close this notable transaction, which is a pilot deal for the Uzbek market. We are constantly working on devising tailor-made ECA-covered solutions in a close and productive collaboration with OeKB and are open to expanding expertise in our core regions.”
The transaction comes as one of the positive results following the DA-CH ECAs joint conference held in December 2019 in Tashkent by OeKB (Austria), Euler Hermes (Germany) and SERV (Switzerland).
JSCB “Uzpromstroybank” is the oldest and one of three major largest state owned banks in Uzbekistan. It is a corporate bank with clients in such sectors as telecommunications, oil and gas, and other base sectors.Historically Uzpromstroybank has a strong market share, with approximately