CDB signs framework agreement with Ipoteka Bank for 68 million RMB (Linked to Record ID#88202)

CDB signs framework agreement with Ipoteka Bank for 68 million RMB On April 19, 2011, China Development Bank signed a framework agreement with Ipoteka Bank for a credit facility worth 15 million USD (see Record ID#88202) and a credit facility worth 68 million RMB.

On the same day, China Development Bank also signed a framework agreement with Uzpromstroybank (Uzbek Industrial and Construction Bank) for a credit facility worth 10 million USD (see Record ID#88205) and a credit facility worth 68 million RMB (see Record ID#88206), as well as a framework agreement with Asaka Bank for a credit facility worth 15 million USD (see Record ID#88201) and a credit facility worth 100 million RMB (see Record ID#88203).

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.