Monday, July 15, 2024

Bolstering Microlending Capacities: TBC Bank Uzbekistan Secures a $10 Million Loan from responsAbility Investments AG


TBC Bank Uzbekistan Secures $10 Million Loan from responsAbility Investments AG

In a significant move aimed at bolstering its microlending capacities, TBC Bank Uzbekistan has procured a substantial $10 million credit line from responsAbility Investments AG, a distinguished impact investor based in Switzerland. This strategic financial support is earmarked for amplifying the digital bank’s loan portfolio, thereby advancing financial inclusivity within Uzbekistan. With its burgeoning population, Uzbekistan stands as Central Asia’s most populous nation, indicating a vital market for such transformative financial initiatives.

As an integral part of the TBC Group, listed on the London Stock Exchange, TBC Bank Uzbekistan operates through a blend of physical and digital modalities in Georgia, while pioneering branchless digital banking in Uzbekistan. The rapid ascension of this mobile bank anchors it firmly within Uzbekistan’s premier digital financial ecosystem. This ecosystem also boasts Payme, an avant-garde digital payments app catering to individuals and small enterprises, alongside Payme Nasiya (Payme Instalments), a burgeoning instalment credit venture.

responsAbility Investments AG positions itself at the forefront of Swiss impact asset management, dedicating its expertise to private market investments across pivotal themes such as financial inclusion, climate finance, and sustainable food. With a robust team of over 270 professionals stationed across 8 offices, the company, as of May 31, 2024, is at the helm of managing assets worth USD 5.0 billion. Its diverse portfolio spans approximately 280 companies across nearly 70 countries, testament to its expansive reach and commitment to fostering positive change.

Nika Kurdiani, the CEO of TBC Group’s operations in Uzbekistan, echoed the sentiment of advancement and inclusivity, stating, “This credit line from responsAbility is an important part of our strategy to broaden our funding base, and it will help us extend our support to more individuals and their microenterprises, helping them grow and prosper.” Kurdiani underscored the bank’s unwavering commitment to enhancing financial inclusion and economic growth through innovative solutions, aiming to widen the access to contemporary financial services throughout Uzbekistan.

This initiative follows closely on the heels of another significant achievement – a $10 million credit line secured from responsAbility Investments AG’s Green Climate Partnership Fund (GCPF). This earlier infusion was specifically targeted at expediting TBC Bank Uzbekistan’s green lending initiatives, underscoring projects with a strong environmental sustainability ethos.

TBC Group’s commendable efforts towards embedding ESG principles at the core of its operations have not gone unnoticed. Boasting an MSCI ESG rating of ‘AA’, one of the highest distinctions in its category, TBC Bank Group recently garnered the Annual Sustainability Silver Award for 2023 from the EBRD, in recognition of exemplary environmental and social practices.

The bank’s commitment to excellence and stability was further validated by Fitch Ratings, which assigned TBC Bank Uzbekistan a Long-Term Issuer Default Rating (IDR) of BB-. This rating aligns with the sovereign’s rating, highlighting the bank’s robust financial health and operational steadiness.

About TBC Uzbekistan:

TBC Uzbekistan heralds as the most extensive digital banking ecosystem in Central Asia, under the aegis of the London-listed TBC Bank Group. Positioned advantageously in Uzbekistan, the bank leverages the relatively untapped retail banking sector to serve the young, progressive, and digital-savvy population of the nation.

The digital bank’s offerings are diverse, comprising TBC UZ, a mobile-only bank; Payme, a technologically advanced digital payments application; and Payme Nasiya (Payme Instalments), a rapidly expanding instalment credit business. Achieving profitability merely two years post-launch, a remarkable feat among global digital banks, TBC Uzbekistan has escalated its registered user base to an impressive 15 million users. With a net profit of USD 23 million in 2023 and an 85% surge in revenue growth in the first quarter of 2024, the bank illustrates a dynamic trajectory of expansion, duly matched by a stable Fitch Rating of ‘BB-‘.

These concerted efforts by TBC Bank Uzbekistan to expand financial accessibility, coupled with its commitment towards embracing and promoting sustainable practices, showcase a forward-thinking approach crucial for fostering economic growth and inclusion in the dynamically evolving landscape of Central Asia.

Jordan Clark
Jordan Clark
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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