BAKU, Azerbaijan, Dec. 19
By Fakhri Vakilov-Trend:
Uzbekistan’s National Bank signed a loan agreement to raise funds in national currency to finance small and medium-sized business projects in total of $100 million with the investment company Frontera Capital (UK), Trend reports citing Uzbek media.
The main advantages of this agreement are raising funds using international financial mechanisms; more favorable financing conditions in Uzbek soums; and raising long-term funds for up to 7 years. Furthermore, the borrowed funds can be used to finance small and medium-sized business projects, as well as retail lending.
Moreover, this agreement provides new opportunities for expanding cooperation with the investment company Frontera Capital, which has many years of experience working with international financial institutions in emerging markets.
The funds were raised by issuing credit notes on the international capital market on behalf of National Bank, which in turn will allow the bank to strengthen its positive image on the global capital market, and will arouse the interest of international investors.
Frontera Capital (has offices in the UK, UAE) is an investment company that specializes in providing long-term financing in local currency and currency risk hedging instruments, both for lenders and borrowers. It also supports the development of a secondary market for loans and bonds in developing countries. Since 2014, Frontera Capital has structured and created sovereign and corporate loans totaling about $1.5 billion in 40 developing countries.
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