Overview

China Eximbank provides $200 million loan to National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) for on-lending purposes in 2019

Commitments (Constant USD, 2023)$207,597,498

Commitment Year•2019Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2019

Last repayment (originally scheduled): Dec 31, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned Banks

National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU)

Loan description

China Eximbank provides $200 million loan to National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) for on-lending purposes in 2019

Grant element•8.0828%Interest rate (t₀)•5.87563%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

In January 2019, China Eximbank and the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) signed a $200 million loan (facility) agreement for on-lending purposes. The loan carries a 5-year maturity and interest rate of LIBOR plus a 3% margin. The other borrowing terms of the loan are unknown. According to NBU’s 2019 Annual Report, $120 million of the loan proceeds were on-lent to other (unspecified) commercial banks in Uzbekistan to facilitate cross-border economic and trade transactions.

Staff comments

1. Joint-Stock Commercial Bank “Uzbek Industrial and Construction Bank” (Uzpromstroybank) is likely one of the banks to which NBU on-lent the proceeds of the China Eximbank loan (see pg. 63 of https://www.rns-pdf.londonstockexchange.com/rns/0121V_1-2019-11-28.pdf). However, this issue requires further investigation. 2. This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. The face value of the loan is equivalent to 1,689,306 million soums. 4. AidData has estimated the all-in interest rate by adding 3% to average 6-month LIBOR in January 2019 (2.848%).