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China Development Bank provides $30 million to Ipoteka Bank for on-lending purposes
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Ipoteka Bank |
| Country | Uzbekistan |
| Start Date | Jul 26, 2017 |
| End Date | Jul 25, 2029 |
| Duration | 4,382 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 54140 |
Grant Description
China Development Bank provides $30 million to Ipoteka Bank for on-lending purposes On July 26, 2017, China Development Bank and Ipoteka Bank -- a state-owned bank in Uzbekistan -- signed a $30 million loan agreement. The agreement was amended for an unknown purpose on October 22, 2019.
The proceeds of the loan were to be used by the borrower to develop small businesses, promote private entrepreneurship, and to purchase modern equipment and tools. Repayments were to made semi-annually by the borrower.
The (principal) amount outstanding was UZS 52,106,489,000 as of December 31, 2017 and UZS 654,839,000,000 as of December 31, 2020.
There are some indications that the China Development Bank loan to Ipoteka Bank may have financially underperformed vis-a-vis the original expectations of the lender.
In June 2023, Ipoteka Bank was not in compliance with different obligations under multiple different facility agreements with China Development Bank.
Specifically, financial covenants were prepared using Uzbek Generally Accepted Accounting Principles (GAAP) rather than the required International Financial Reporting Standards (IFRS). This breach of agreement resulted in loan repayment acceleration right for CDB. Ipoteka does not expect this non-compliance to impact the financial performance of the bank.
Staff Comments
1. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- International Financing Reporting Standards Consolidated Financial Statements and Independent Auditors Report
- Ipoteka Bank attracts Chinese loan for US$30m
- Consolidated Financial Statements and Independent Auditors' Report For the Year Ended 31 December 2020
- Consolidated Financial Statements and Independent Auditors’ Report For the Year Ended 31 December 2021
- Interim Condensed Consolidated Financial Information for the six months ended 30 June 2023 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Ipoteka Bank
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