First Parallel Loan with IFC
18. August 2023
IIV Mikrofinanzfonds issues first parallel loan with IFC to Uzbek financial institution
- Loan amount equivalent to up to USD 10 mio. in Uzbek S’om (UZS) goes to PJSCB DAVR Bank
- Parallel lending in the same amount by the International Finance Cooperation (IFC)
The German Impact Investor Invest in Visions has granted a loan through its managed IIV Mikrofinanzfonds in the amount of USD 10 mio. in Uzbek S’om (UZS) with a term of three years to the Uzbek PJSCB DAVR Bank. The special feature is that it is a parallel loan given in the same amount by the International Finance Corporation (IFC). The IFC had already issued DAVR Bank a loan of USD 5 million in 2020, which was repaid in December 2022.
Targeting micro, small and medium-sized enterprises (MSMEs), DAVR Bank is one of Uzbekistan’s few private financial institutions. In a state-dominated banking system, it is well positioned to effectively channel funds from the loan investment package to borrowers. The two loans are intended to enable DAVR Bank to further expand its presence among MSMEs, including among women-owned enterprises. MSMEs account for about 45 per cent of DAVR Bank’s gross portfolio, of which 16.4 per cent are loans to women entrepreneurs.
This loan will make a significant contribution to the development of the Uzbek economy and further promote MSME financing.
Mirsodiq Mirzakhidov, Head of the International Cooperation Department at PJSCB DAVR BANK
“We expect the UZS financing package, worth a total of USD 20 million, to improve access to finance for non-bank financed MSMEs. The lending is expected to strengthen the providers of MSME financing, such as DAVR Bank, and at the same time to empower entrepreneurs,” says Edda Schröder, Founder and Managing Director of Invest in Visions.
The information contained herein does not constitute an investment recommendation or other advice. The opinions expressed herein are those of Invest in Visions. These opinions are subject to change at any time. Although great care has been taken to ensure that the information contained in this document is accurate, no responsibility can be accepted for errors or omissions of any kind, as well as for any actions based on them. The publisher is Invest in Visions GmbH with its registered office at Freiherr-vom-Stein-Str. 24-26, 60323 Frankfurt am Main, Germany.