uzbekistan –a country in transition · eastern europe & caucasus 18% russia 3% south-eastern...

Uzbekistan – a Country in Transition

Dilshod Akhundjanov, Associate Director, Senior Banker

Sobir Samaridinzoda, Principal Banker (Industry, Commerce & Agribusiness)

24 February, 2020 24 February, 2020 24 February, 2020 24 February, 2020 –––– Austrian Trade Mission (Tashkent)Austrian Trade Mission (Tashkent)Austrian Trade Mission (Tashkent)Austrian Trade Mission (Tashkent)

Introduction to EBRD

EBRD Products

Briefly about Uzbekistan

EBRD in Uzbekistan

EBRD & Austria

ContentsContentsContentsContents

EBRD EBRD EBRD EBRD ---- An An An An ooooverviewverviewverviewverview

EU EU EU EU 28 28 28 28 CountriesCountriesCountriesCountries1111

63%63%63%63%

EBRDEBRDEBRDEBRDregion region region region

excludingexcludingexcludingexcludingEUEUEUEU8%8%8%8%

OthersOthersOthersOthers11%11%11%11%

USAUSAUSAUSA10%10%10%10%

JapanJapanJapanJapan9%9%9%9%

Shareholding structure

1. Includes European Community and European Investment Bank

(EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8.6%

An international financial institution supporting the development of sustainable well-functioning market economies

Triple-A rating(from all three main rating

agencies (S&P, Moody’s and Fitch)

Owned by 69 countries and 2

inter-governmental institutions

(the EU and EIB)

€30 billion Capital base

1991 Established

1992 Russia and 11 other members

of the former Soviet Union join

2007 The Czech Republic becomes the

first country to “graduate” from

the EBRD

2012 Starts investing in Egypt,

Jordan, Morocco and Tunisia

2016 25th anniversary;

China becomes 67th member

2017 Starts operating in Lebanon and

in West Bank and Gaza

2018 India and San Marino become

members

2019 Libya becomes a member

FI21%

Corporate30%

Infra48%

Financial Institutions 21% (Banks, Leasing, Insurance,Financial Institutions 21% (Banks, Leasing, Insurance,Financial Institutions 21% (Banks, Leasing, Insurance,Financial Institutions 21% (Banks, Leasing, Insurance,Other)Other)Other)Other)

Corporate 30% (Agribusiness, M&S, P&T, ICT, EquityCorporate 30% (Agribusiness, M&S, P&T, ICT, EquityCorporate 30% (Agribusiness, M&S, P&T, ICT, EquityCorporate 30% (Agribusiness, M&S, P&T, ICT, Equityfunds)funds)funds)funds)

Sustainable Infrastructure 48% (Transport, MunicipalSustainable Infrastructure 48% (Transport, MunicipalSustainable Infrastructure 48% (Transport, MunicipalSustainable Infrastructure 48% (Transport, MunicipalInfrastructure)Infrastructure)Infrastructure)Infrastructure)

EBRD’s Investments

Since 1991, EBRD invested over €142 billion in

around 5,670 projectsIn 2019

€10 bn

452projects

EBRD Top 10 investee countries in 2019 (€m)

Private sector accountedfor share of

79%

1111 EgyptEgyptEgyptEgypt 1,2141,2141,2141,214

2222 UkraineUkraineUkraineUkraine 1,2251,2251,2251,225

3333 TurkeyTurkeyTurkeyTurkey 1,0021,0021,0021,002

4444 PolandPolandPolandPoland 833833833833

5555 KazakhstanKazakhstanKazakhstanKazakhstan 685685685685

6666 GreeceGreeceGreeceGreece 571571571571

7777 UzbekistanUzbekistanUzbekistanUzbekistan 517517517517

8888 SerbiaSerbiaSerbiaSerbia 517517517517

9999 BelarusBelarusBelarusBelarus 391391391391

10101010 RomaniaRomaniaRomaniaRomania 372372372372

EBRD Portfolio (December 2019): € 46 billion

Sector

Debt: 83%Equity: 9%

Guarantee: 8%

8.1 8.7 9.2 8.7 9.5

1.3 0.7 0.4 0.80.5103

112121

131142

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2015 2016 2017 2018 2019

Net cum

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Net cum

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Annual b

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BI)

Annual b

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Annual b

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Annual b

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(EUR b

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(EUR b

n)

(EUR b

n)

(EUR b

n)

Equity Debt Net Cumulative Bank Investment

C.AsiaC.AsiaC.AsiaC.Asia11%11%11%11%

CEECEECEECEE14%14%14%14%

CypCypCypCyp/Greece/Greece/Greece/Greece4%4%4%4%

EECEECEECEEC18%18%18%18%RussiaRussiaRussiaRussia

4%4%4%4%

SEESEESEESEE19191919%%%%

SEMEDSEMEDSEMEDSEMED16%16%16%16%

TurkeyTurkeyTurkeyTurkey15%15%15%15%

Central Asia 11%Central Asia 11%Central Asia 11%Central Asia 11%

Central Europe & Baltics 14%Central Europe & Baltics 14%Central Europe & Baltics 14%Central Europe & Baltics 14%

Cyprus & Greece 4%Cyprus & Greece 4%Cyprus & Greece 4%Cyprus & Greece 4%

Eastern Europe & Caucasus 18%Eastern Europe & Caucasus 18%Eastern Europe & Caucasus 18%Eastern Europe & Caucasus 18%

Russia 3%Russia 3%Russia 3%Russia 3%

South-Eastern Europe 19%South-Eastern Europe 19%South-Eastern Europe 19%South-Eastern Europe 19%

SE Mediterranean 16%SE Mediterranean 16%SE Mediterranean 16%SE Mediterranean 16%

Turkey 15%Turkey 15%Turkey 15%Turkey 15%

Region

EBRD Product Flexibilitytailored tailored tailored tailored to to to to project needsproject needsproject needsproject needs

Debt Equity

• Loans to the private sector (up to 35% syndicating the rest), including SME

• Debt co-financing, working with commercial banks and IFIs

• Project finance loans (incl. PPP)

• Fixed/floating rates

• Syndication under preferred creditor status

• Access to capital markets

• Investing with majority sponsor to reduce equity burden and add partnership value. No more than 25%

• Common or preferred stock

• Privatisation and initial public offering (IPO)

• Mezzanine equity and subordinated debt

• Infrastructure funds

• Private equity and VC Funds

Technical CooperationEBRD brings in additional financial capital and technical assistance (TC) to economically

viable projects

Trade Facilitation Program

Projects in All Key Business Sectors

Transport

Agribusiness

Financial Institutions

Manufacturing &

Services

Municipal & Environmental

Infrastructure

Power & Energy

Natural Resources

Property & Tourism

Telecommunications,

Informatics & Media

Equity Funds

Nuclear Safety

Financings Green Economy

Briefly About Uzbekistan

GDP in 2019 GDP in 2019 GDP in 2019 GDP in 2019 ---- $57.8 (5.6% growth)$57.8 (5.6% growth)$57.8 (5.6% growth)$57.8 (5.6% growth)

Services, 32.30%

Industry, 27.30%

Agriculture, forestry and

fisheries, 25.50%

Net taxes on products,

9.10%

Construction, 5.80%

TaxationTaxationTaxationTaxation

• Personal income tax of 12% (flat)

• General corporate tax rate of 12%

• Value added tax rate of 15%

• Double Tax Treaty between Uzbekistan

and Austria effective since 2002

11111111 industrial zones

8 8 8 8 pharmaceutical zones

1 1 1 1 agricultural zone

1 1 1 1 tourism and hospitality zone

PopulationPopulationPopulationPopulation

• 33.7million in 2019 at 1.7%

• 14.6 million of economically active

population

• Median age at 29.1

Natural ResourcesNatural ResourcesNatural ResourcesNatural Resources

• Gold 10th

• Natural gas & oil 24th

• Copper 10th

• Uranium 16th

Doing Business RankingDoing Business RankingDoing Business RankingDoing Business Ranking

• 69th in 2020

Travelling to UzbekistanTravelling to UzbekistanTravelling to UzbekistanTravelling to Uzbekistan

• Visa free with 87 states*

• EU citizens / Austrians can stay for 30

days without visa

* some conditions apply

Sectors of Interest

• Energy & InfrastructureEnergy & InfrastructureEnergy & InfrastructureEnergy & Infrastructure

o Renewable energy: wind & solar

o Development of hydro power and electric transmissions

o Introduction of toll roads to Uzbekistan

o Development of waste water treatment facilities

• Development of Tourism & ServicesDevelopment of Tourism & ServicesDevelopment of Tourism & ServicesDevelopment of Tourism & Services

o Hospitality - Development of Silk Road cities

o Banking

o Healthcare

• ManufacturingManufacturingManufacturingManufacturing

o Chemicals

o Building Materials

o Pharmaceuticals

• MiningMiningMiningMining

o Oil & gas

Investment Promotion Agency

www.invest.gov.uz

Key ReformsKey ReformsKey ReformsKey Reforms

Feb ‘17 Sep’17 J a n u a r y , 2 0 1 9Feb’18 Mar’19 May’19Feb’19 Aug’19 Nov’19 Jan’20

EBRD Strategy in Uzbekistan

The new strategy was approved by the Bank's Board of Directors in September 2018https://www.ebrd.com/where-we-are/uzbekistan/overview.html

The strategic priorities for EBRD in the years 2018The strategic priorities for EBRD in the years 2018The strategic priorities for EBRD in the years 2018The strategic priorities for EBRD in the years 2018----2023:2023:2023:2023:

0.1 Supporting reforms

Assistance in developing a legislative framework based on

current development and experience

0.2 Private sector

Improving competitiveness by enhancing the role of the

private sector in the economy

0.3 Green economy

Promoting clean energy and resource solutions in all

sectors.

0.4 Integration

Supporting enhanced regional and international

cooperation and integration

79 projects

€1.9 billion

EBRD total investment

44% - Private sector

Policy Engagements & InitiativesPolicy Engagements & InitiativesPolicy Engagements & InitiativesPolicy Engagements & Initiatives

• Technical Assistance on supporting the process of improving corporate governance standards and practices

in state-owned enterprises, enabling their commercialisation and strengthening competition in the economy

and ultimately support in privatisation privatisation privatisation privatisation of stateof stateof stateof state----owned owned owned owned propertypropertypropertyproperty

• Capital Markets Development and Local Currency Lending Initiative Capital Markets Development and Local Currency Lending Initiative Capital Markets Development and Local Currency Lending Initiative Capital Markets Development and Local Currency Lending Initiative to achieve more efficient and self-

sustaining financial intermediation in Uzbekistan through broader use of local currency and the

development of local capital markets, thereby contributing to economic growth and fostering a more stable

financial environment;

• Foreign Investment Council Foreign Investment Council Foreign Investment Council Foreign Investment Council supported by EBRD and chaired by the President of Uzbekistan

• Sector specific support:

• Mining

• Energy

• Banking

• Tourism

• And more

Advice for Small Businesses in Uzbekistan

12

• EBRD relaunched its “Advice for Small Businesses”“Advice for Small Businesses”“Advice for Small Businesses”“Advice for Small Businesses” programme in Uzbekistan in November 2017.

About € 1 million of donor funds were allocated to support SMEs in Uzbekistan.

• Since its launch, more than 60 private micro, small and medium-sized enterprises benefited from the

programme.

Geography of implemented projects, 2017Geography of implemented projects, 2017Geography of implemented projects, 2017Geography of implemented projects, 2017----2019 Type of advisory services provided, 20172019 Type of advisory services provided, 20172019 Type of advisory services provided, 20172019 Type of advisory services provided, 2017----2019201920192019

SME Programme Beneficiaries

Private Sector Development Private Sector Development Private Sector Development Private Sector Development

$10 $10 $10 $10 millionmillionmillionmillion

2017

Credit line for expansion

$11.2 $11.2 $11.2 $11.2 millionmillionmillionmillion

2017



2017



2017

Credit line - SME


2017

Credit line - SME

$2$2$2$23333 millionmillionmillionmillion

2017

Credit line - SME


2018

Credit line - MSME


2018

Credit line - MSME


2018


$9.2 $9.2 $9.2 $9.2 millionmillionmillionmillion


2019

$$$$0000....5555 millionmillionmillionmillion

Credit line - RSF

2019

$$$$15151515 millionmillionmillionmillion

2018

Credit line - RSF

$2$2$2$20000 millionmillionmillionmillion

2017

Credit line - SME


2019

Credit line - RSF

Investments to Investments to Investments to Investments to date since 2017date since 2017date since 2017date since 2017

More than 250

MSMEvia

Credit lines

Green Green Green Green TransitionTransitionTransitionTransition



2018

A sovereign loan for

rehabilitation of district heating infrastructure


2018


rehabilitation of district heating infrastructure

$30 $30 $30 $30 millionmillionmillionmillion2018


rehabilitation of water and wastewater infrastructure


2018




2018



$82.5 $82.5 $82.5 $82.5 millionmillionmillionmillionA sovereign loan for the

reinforcement of the high voltage transmission

NAMANGANSUVOKOVA

HOREZMSUVOKOVA

2018


2019

Loan for electricity generation

$5 $5 $5 $5 millionmillionmillionmillion2019

Loan for on-lending

QASHQADARYOSUVOKOVA

$$$$60606060 millionmillionmillionmillion2019

Loan for rehabilitation of

sewage system

HOREZMSUVOKOVA


Loan for rehabilitation of

sewage system


Loan for electricity

transmission

IntegrationIntegrationIntegrationIntegration


€€€€0.3 0.3 0.3 0.3 millionmillionmillionmillion

2018

Loan for expansion

$30 $30 $30 $30 millionmillionmillionmillionTrade facilitation

programme


2017

Trade facilitation programme

$$$$22225 5 5 5 millionmillionmillionmillion

2017-19



20182017








Austria & EBRDAustria & EBRDAustria & EBRDAustria & EBRD

• Accumulated Austria-EBRD investments of at EUR 22.8 billion EUR 22.8 billion EUR 22.8 billion EUR 22.8 billion

as of Dec, 2018

• Historically, joint investments in:Historically, joint investments in:Historically, joint investments in:Historically, joint investments in:

o Eastern Europe, Balkans and Ukraine

o Sectors: industry, commerce, agriculture, energy, financial

institutions and infrastructure

• Ways for Austrian companies to work with EBRD:Ways for Austrian companies to work with EBRD:Ways for Austrian companies to work with EBRD:Ways for Austrian companies to work with EBRD:

o Project Financing

o Exports - Trade Facilitation Programme

o Procurement – participating in public tenders

(https://www.ebrd.com/work-with-us/procurement.html)

Banking Projects with Austrian CompaniesBanking Projects with Austrian CompaniesBanking Projects with Austrian CompaniesBanking Projects with Austrian Companies

HighlightsHighlightsHighlightsHighlights

Project SummaryProject SummaryProject SummaryProject Summary

CountryCountryCountryCountry GeorgiaGeorgiaGeorgiaGeorgia

SectorSectorSectorSector TransportTransportTransportTransport

ProductProductProductProduct Senior Loan Senior Loan Senior Loan Senior Loan

AmountAmountAmountAmount €3 million€3 million€3 million€3 million

ClientClientClientClient GebrGebrGebrGebrüderüderüderüder WeissWeissWeissWeiss Signed inSigned inSigned inSigned in 2013201320132013

• Gebrüder Weiss International is the largest family-owned business in Austria with a 500-year history in the

transport industry in Europe, operating in more than 25 countries and in a network of 158 branches.

• In 2013, Gebrueder Weiss decided to construct a state-of-the-art warehousing and logistics facility in Georgia

introducing a new all-in-one service and the latest western know how/technologies in this area. The initial

constructions costs of EUR 8 million were financed by shareholder loans and a senior secured loan from

EBRD.

• This project represented the first logistics terminal of this type and scale (11,300 m²) in Georgia.

Case Study: Case Study: Case Study: Case Study: GebruederGebruederGebruederGebrueder Weiss / GeorgiaWeiss / GeorgiaWeiss / GeorgiaWeiss / Georgia

HighlightsHighlightsHighlightsHighlights

Project SummaryProject SummaryProject SummaryProject Summary

CountryCountryCountryCountry PolandPolandPolandPoland

SectorSectorSectorSector Power & EnergyPower & EnergyPower & EnergyPower & Energy

ProductProductProductProduct Senior Loan Senior Loan Senior Loan Senior Loan

AmountAmountAmountAmount €30 million€30 million€30 million€30 million

ClientClientClientClient Global RPIGlobal RPIGlobal RPIGlobal RPI Signed inSigned inSigned inSigned in 2009200920092009

• Global Renewable Power International (“Global RPI”) is co-owned by Minicentrales S.A. of Spain and

Hydrocontracting GmbH of Austria, together, the international hydro and windfarm project developers and

promoters.

• The finance was provided for the construction and operation of a 50MW Tychowo windfarm, located

approximately 350km north-west of Warsaw, and close to the Baltic Sea shore.

• The project contributed to the development of renewable energy in Poland and substantially increased the

Polish wind generation capacity that was approx. 230MW at the time.

Case Study: Case Study: Case Study: Case Study: TychowoTychowoTychowoTychowo Wind Farm / PolandWind Farm / PolandWind Farm / PolandWind Farm / Poland

Associate Director

Senior Banker

Sobir SamaridinzodaSobir SamaridinzodaSobir SamaridinzodaSobir Samaridinzoda

Dilshod AkhundjanovDilshod AkhundjanovDilshod AkhundjanovDilshod Akhundjanov

Principal Banker

Industry, Commerce and

Agribusiness

[email protected]

+998 78 1404031

+998 90 9695885

[email protected]

+998 78 1404033

+998 909692552

09/03/2020 22 www.ebrd.com/am

Developing the FutureInspiring Private Sector Investment for

Sustainable Development

EBRD Annual Meeting & Business Forum

London, UK

13 – 14 May 2020

www.ebrd.com/am

Thank you

23

Q&A

uzbekistan –a country in transition · eastern europe & caucasus 18% russia 3% south-eastern...

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