The European Bank for Reconstruction and Development (EBRD) is to provide a financial package of US$45 million to Uzbekistan's Ipak Yuli Bank.

The package includes the first loan of its kind to support green lending and an increase in Ipaq Yuli's limit under the EBRD's trade facilitation programme (TFP).

Instruments issued or guaranteed by participating banks in the TFP may be secured by guarantees issued under the TFP. These include documentary letters of credit (L/Cs); trade-related standby L/Cs from issuing banks; deferred payment L/Cs, and L/Cs with post-financing advance payment bonds.

TFP limit doubled

The EBRD is promoting green lending and facilitating trade in Uzbekistan by offering a financial facility in two components totalling up to US$45 million to Ipak Yuli.

One component is a US$25 million limit increase under the EBRD's TFP that brings the Uzbek bank's total limit under the programme to US$50 million.

The increase in the TFP limit will enable Ipak Yuli, one of the most active TFP-issuing banks in Uzbekistan, to scale up its growing trade finance business and help Uzbek firms to import necessary goods, services and equipment, and to export their products.

First GEFF Uzbekistan II loan

The second component is a senior loan of up to US$20 million under the EBRD's Uzbekistan Green Economy Financing Facility II (GEFF Uzbekistan II). This will be the first loan under the GEFF Uzbekistan II.

It will be disbursed in the local currency and will improve access to green and climate-resilient technologies for local households and small and medium-sized enterprises.

The GEFF Uzbekistan II is part of the EBRD's Green Economy Transition (GET) approach, through which the development bank aims to become a majority green bank by 2025.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.