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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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Press Release

Standard Chartered and MIGA announce EUR 114 million financing for National Bank of Uzbekistan

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May 14, 2024, London, UK – Standard Chartered and the Multilateral Investment Guarantee Agency of the World Bank Group (MIGA) announce today EUR 114 million financing for the Joint-stock company National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU), the largest bank in Uzbekistan. This is MIGA’s first guarantee against the risk of non-honoring of financial obligations by a state-owned enterprise in Uzbekistan. 

NBU will use the MIGA-covered loan to support the development of small and medium enterprises (SMEs) across various sectors, including agribusiness, wholesale, and manufacturing. Due to the social nature of the SMEs’ growth plans, Standard Chartered structured the financing to meet the Social Loan Principles (SLPs). The SLPs aim to create a high-level framework of market standards and guidelines, providing a consistent methodology for use across the social loan market.   

Standard Chartered acted as mandated lead arranger, social loan coordinator, bookrunner, original lender, structuring bank and facility agent. The other lender and mandated lead arranger is Landesbank Baden-Württemberg. 

This important financing reflects NBU’s strategy to help the SME segment, which plays a pivotal role in Uzbekistan’s growth and job creation. Equally, it demonstrates the business case and financial viability of lending to SMEs, paving the way for other financial institutions to do the same. 

Saif Malik, UK CEO at Standard Chartered Bank, said: “We are proud to leverage our strong partnership with the National Bank of Uzbekistan and MIGA to encourage a greater flow of private capital for developing the SME sector, a socially impactful project.”  

MIGA’s guarantee will enable NBU to diversify its funding sources from traditional official development assistance and bilateral sources. Moreover, the project will implement an enhanced Environmental and Social Management System (ESMS) tailored to SMEs. This system will incorporate globally recognized environmental and social standards and best practices. By integrating this ESMS into NBU's existing credit process, the bank will sustain effective environmental and social frameworks. This integration will empower NBU to assess, manage, and monitor risks and impacts associated with subprojects while responsibly managing the overall portfolio risk. 

Hiroshi Matano, Executive Vice President of MIGA, said: “MIGA’s guarantees play a crucial role in bringing much-needed capital to developing countries, facilitating building of a sustainable economy. As our first non-honoring project in Uzbekistan, we are eager to further expand to the country through partnerships with companies like Standard Chartered Bank.”    

To confirm their intentions in relation to the transaction, both Standard Chartered and NBU officials came together on May 2 to sign a Memorandum of Collaboration, at a ceremony at NBU’s offices in the capital Tashkent. 

 

 

For further information please contact: 

 

Claire Newell 

Head of Communications for UK and Europe 

Standard Chartered 

Tel: +44 (0)207 885 8857  

 

Elizabeth Howton 

Head of Communications 

Multilateral Investment Guarantee Agency 

Tel: (202) 458-5922 

 

Zebo Tukhtaeva 

Press secretary – Adviser to the Chairman of the Board 

National Bank of Uzbekistan 

Tel: +998 78148-0058 

Email: ZTukhtaeva@nbu.uz   

 

Standard Chartered 

We are a leading international banking group, with a presence in 53 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges. For more stories and expert opinions please visit Insights at sc.com. Follow Standard Chartered on Twitter, LinkedIn and Facebook. 

 

Multilateral Investment Guarantee Agency 

MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $81 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have helped provide new of improved electricity services to more than 78 million people.   

 

National Bank of Uzbekistan 

The National Bank for Foreign Economic Activity of the Republic of Uzbekistan was established by Decree of the first President of Uzbekistan I. Karimov in September 1991and transformed into a Joint-stock company based on the Decree of the President of the Republic of Uzbekistan No. PP-4540 dated November 30, 2019 on Measures to transform the organizational form of the National Bank for Foreign Economic Activity of the Republic of Uzbekistan from Unitary Enterprise into a Joint-stock company. 

 

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