EBRD and Hamkorbank support dairy industry in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) is increasing its support to small and medium-sized enterprises in Uzbekistan in partnership with its longterm financial intermediary Hamkorbank. The two institutions are financially contributing to the development of dairy sector in the Khorezm region responsible for the production of nearly 10 per cent of the national milk output.

Hamkorbank is lending up to €0.5 million to Tillo Domor, an Urgench based popular producer of dairy products, while 65 per cent of the risk on the loan will be shared by the EBRD under a risk-sharing framework. With this transaction, the Bank's exposure to the company through risk-sharing products has now reached €1.5 million since 2019.

The loan is supported by the EBRD's Finance and Technology Transfer Centre for Climate Change (FINTECC) programme financed by the Global Environmental Facility Trust Fund. A grant of US$106,200 will cover energy efficiency measures designed to cut the annual consumption of water by 6,500 cubic metres and help reduce annual CO2 emissions by 368 tonnes though natural gas savings. Tillo Domor is a well-established operation in Urgench, where the EBRD has just opened its third office in the country. Its products have popular appeal across Uzbekistan because of its geographical origin firmly associated with the ancient state of Khorezm, one the world's most ancient civilisations.

The project benefited from advisory services financed by the European Union and by the Small Business Impact Fund (whose donors are Italy, Japan, South Korea, Luxemburg, Sweden, Switzerland, Taipei China and the USA). To date, the EBRD has invested over €2 billion through 92 projects in the economy of Uzbekistan.

Meanwhile, The EBRD is providing Polish largest pharmaceuticals producer Polpharma with a PLN200m (EUR45m equivalent) loan for general and corporate purposes including inhouse R&D activities, green investments and ESG strategy. Investment in new technologies will unlock the development of new substances and products in currently unavailable niches.

The EBRD loan will also be used for the implementation of a "Go green" modernisation programme aimed at minimising the environmental and climate impact of the company's operations. Generating more energy from renewable sources, energy efficiency improvements and usage of innovative technology will allow Polpharma to reduce CO2 emissions by 16,500 tons annually.

As a part of the ESG strategy, Polpharma will also implement a number of gender focused activities, including first formal Diversity and Inclusion Policy, as well as disseminating its best practices around gender inclusion within the broader community and opening up discussions around women's economic empowerment in Poland. Polpharma will be one of the first nonlisted entity in Poland to include TCFD recommendations as well as "ESG reporting guidelines" jointly developed by EBRD & Warsaw Stock Exchange for publicly listed entities.

Polpharma is among the top generic drug manufacturers in CEE and offering modern drugs, substances and innovative solutions. The Company operates manufacturing sites and R&D centres in Poland and Kazakhstan. Polpharma has also played an important role in combating the pandemic in Poland. The company has commercialised in Poland the first generation of PCR tests developed by the Polish Academy of Sciences.

Since the start of its operations in 1991, the EBRD has invested nearly €11 billion through 458 projects in all sectors of the economy in Poland. Supporting the country's private sector and green transition with investments in renewable energy and energy efficiency remains one of the Bank's key priorities in the country.

Meanwhile, Ayten Rustamova has been appointed Regional Head of the Kyrgyz Republic, Tajikistan and Turkmenistan for the European Bank for Reconstruction and Development. She will be based in Bishkek, the capital of the Kyrgyz Republic and will assume her duties on 1 September 2021.

Ms. Rustamova said: "I am very happy to stay in Central Asia, where I have been working for the last 4 years. The need for the EBRD's knowledge and resources in the countries, I am going to cover, has significantly increased in the post-Covid-19 environment. I'll be closely working with counterparts in all countries to promote green, inclusive, digital and life changing projects, which will help make of all these economies more sustainable. This is the challenge I am really looking forward to." An Azerbaijani national, Ayten Rustamova joined the EBRD in 2001 and held various banking positions in the Baku office of the Bank before becoming EBRD Head of Tajikistan in 2017. She holds Master's Degree in languages from Azerbaijan State University of Foreign Languages and MBA in International Business from Khazar University (Azerbaijan) in association with Georgia State University (Atlanta, USA). As EBRD Regional Head of the Kyrgyz Republic, Tajikistan and Turkmenistan, Ms. Rustamova is succeeding Neil McKain, who is returning to the Bank's Headquarters in London.