BAKU, Azerbaijan, September 14. Standard Chartered has arranged a 770 million yuan (about $114.8 million) syndicated loan for Uzbekistan’s Asakabank, supporting clients importing goods from China and facilitating growing trade and investment flows between Uzbekistan and China.
This was reflected in the press release by Standard Chartered.
The transaction marks Asakabank’s first yuan-denominated syndicated loan and is Standard Chartered’s third transaction with the Uzbekistan-based bank. Standard Chartered acted as the Sole Mandated Lead Arranger, with the proceeds to be used by Asakabank to finance clients involved in imports of Chinese goods.
The deal was announced in London on September 11 and comes as the yuan plays a growing role in Uzbekistan-China trade and cross-border financing. The transaction is also part of a broader cooperation between the two banks focused on yuan-denominated business and opportunities along the China-Central Asia trade corridor.
"Trade ties between Uzbekistan and China continue to strengthen, driving growing demand for RMB-denominated financing solutions," said Amin Semmari, CFO of Asakabank. "This transaction reflects the strong commitment of both Asakabank and Standard Chartered to supporting these flows and facilitating cross-border business."
As part of the expanded cooperation, Standard Chartered and Asakabank recently signed a memorandum of understanding at the 11th Belt and Road Summit in Hong Kong, held September 9-10. The agreement covers cooperation in yuan-related business and trade-corridor opportunities and complements Asakabank’s plans to open a yuan account with Standard Chartered in Hong Kong.
Lucy Rahal, executive director for Public Sector Coverage at Standard Chartered, said the transaction reflects the "growing role of RMB in facilitating trade and investment flows between Uzbekistan and China." She added that demand for yuan-based solutions is increasing alongside commercial links between China and Central Asia.
Trend’s calculations show that the 770 million yuan facility is equivalent to roughly $108 million at current exchange rates. More importantly, the financing is specifically linked to imports from China, making it a direct mechanism for supporting bilateral trade rather than general-purpose bank funding.
In Trend’s assessment, the transaction highlights the growing use of the yuan in Uzbekistan’s external economic relations. For Uzbek banks and companies trading with China, yuan-denominated financing can reduce the need to convert between multiple currencies and provide a closer match between financing and underlying trade flows.
Furthermore, Trend’s analysis shows that the deal also has significance beyond Asakabank’s immediate financing needs. The planned yuan account in Hong Kong and the new MoU could create a broader financial channel connecting Uzbek companies with Chinese suppliers and investors. As China remains one of Uzbekistan’s largest trading partners, the expansion of RMB financing infrastructure could support deeper bilateral trade while gradually diversifying the currencies used in Uzbekistan’s international transactions.
