OPEC Fund for International Development’s $20 Million Loan Agreement

Dentons advised OPEC Fund for International Development (OFID) on its US$20 million loan to finance SMEs in Uzbekistan.

Under the terms of the agreement, OFID will provide a US$20 million loan to the Uzbek Industrial and Construction Bank (Uzpromstroybank) to finance local small and medium sized companies in an array of sectors such as agriculture, textile, healthcare and construction.

OFID and Uzbekistan have been cooperating since 2000. However, this is OFID’s first financing transaction with a local financial institution in Uzbekistan.

The loan will enable Uzpromstroybank to expand access to small- and medium-sized enterprises (SMEs), an important driver of economic growth and job creation. The Bank will extend trade loans to finance sub-borrowers in different sectors such as agriculture, healthcare, construction and textiles.

The OPEC Fund is a development finance institution established by the member states of OPEC in 1976. The OPEC Fund works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world.

Dentons advised OFID with partner Shukhrat Yunusov (Picture), Head of the Banking and Finance practice in Uzbekistan and a dual qualified lawyer (Solicitor of Senior Courts of England and Wales and Advocate), and junior associate Sanjar Narzullaev.

Involved fees earner: Shukhrat Yunusov – Dentons;

Law Firms: Dentons;

Clients: OPEC Fund for International Development (OFID);

Author: Michael Patrini.