Project financing

Accepting active participation in reforming economy of the republic, Uzpromstroybank contributes the appreciable contribution to development of the branches to industry of the country.

One of the priority directions to activity of the bank is a financing both strategic significant branches of the economy, and project for subject of the small business and quotient enterprise, importing equipment for production export oriented and import substituting product.

A design financing is In Uzbekistan one of most dynamic developing sector of the bank services.

Project financing presents itself specific type of the bank credit, diversified that:

• credit stand out on purchasing of the significant main means;
• Project capable if required function apart from organizer «main means of the project and/or incomes from its usages serves the guarantee, which obliges can withdraw for nonpayment of the main debt and percent.

Project financing so far interesting, so and in a complicated way since to each project is required personal approach.

Need for design financing grows from day to day. The most real on today are investments in settled enterprises, which develop its business - increase the geography, conduct the rearmament.

For bank this most acceptable variant: operating bank well knows the credit history of the enterprise, most client, its management, and financial condition.

Actual is a design financing, where source заемных facilities are a credit facilities MFI.

One of the essential advantage given systems of the lending (the facility credit line) is a low percent rate.

Under concrete investment project rate will be its, but in any event, she will greatly lower on home markets. The West facilities are given on that cost, which formed on west market. One more essential moment: payments of the percent on such credit begin, as a rule, not earlier than through 3-6 months after reception of the credit i.e. enterprise, has a possibility to put(deliver) equipment, realize his(its) montage and begin on him to work.

Proportional period is given on payments of the main debt from 6 before 24 months. Under design financing our bank undertakes the risk of the determination to solvency of the borrower, liquidity of the guarantee, but at export - a risk conversion etc.

INVESTMENT PROJECTS IN FOREIGN CURRENCY

"Uzpromstroybank" are attracted credit lines of the German banks (HVB, Dresdner Bank, Commerzbank) under insurance covering export-credit agency and Islamic Bank of the Development (Saudi Arabia) under warranty UZPSB.

Financing as of credit line is directed on modernization, technical and technological rearmament existing enterprise, as well as on creation production qualitative, competitive, export oriented, import substituting product (purchasing of the technological equipment).

The Conditions of the financing on credit line of the German banks is concluded in following:

• Is Financed 85% cost of the import contract on supply of the equipment;
• A Term of credit - before 5 years, including proportional period not more than 1,5 (the period, in which is not redeemed main debt);
• A Percent rate forms EVRIBOR + percent interest foreign bank+ percent interest OJSCB (the size of the percent rate LIBOR or EVRIBOR is defined on London exchange);
• Currency of the credit - USA dollar or EURO;
• Amount of the Pawn provision must form the minimum 125% from amount of the credit;
• Credits of the German banks are issued under covering Insurance Agency "Germes".
• Indemnifying bonus agency forms approximately - 8-11% from cost 85% contract (can be paid both supplier and buyer (is included in cost of the contract));
• Insurance agency cover 85% cost of the main contract.
• Commission for management - before 1% from amount of the credit (single).
• Commission for obligation – up to 0,5% from unassimilated part to credit line;
• Correlation between acknowledgement and own facility in the overall value of the project must form not less than 75:25.
• Purpose of the credit - purchasing of the technological equipment.

The Terms of the financing on credit line Islamic Bank of the Development are concluded in following:

• Purpose of the project - a financing Small Enterprise (MP) in industrial sector and production projects in sphere of the service and infrastructures, investment in new projects, on modernization or technical and technological rearmament existing enterprises;
• Period of the leasing - before 10 years, including proportional period not more than 2 years (the period, in which is not redeemed main debt);
• Percent rate forms the LIBOR + 2,50% (the markup IBR) annual;
• Currency of the leasing - USA dollar;
• Minimum amount of the leasing - 100 thousand dollars. USA;
• Maximum amount of the leasing - 1 billion. Dollars. USA;
• Method of the financing - a leasing and sale by installments.
• Hotels, motels, housing-public facilities and the other projects, which can be undesirable with standpoint of shariya law, can be not financed.
• Uzpromstroybank acts as the Guarantor before obligations of the Borrower.

List document binding on granting in Bank when considering investment project, supposed to realization to account of the credit

• The head of the enterprises (attested).

• The Documents about state registration.

• The Feature on leaders managing subject.

• The Confirming documents about contributing the share founder.

• The History of the credit relations with banks.

• The Constituent agreement (attested).

• The Accounting report of the enterprise, confirmed tax inspection for the last three years in cut quarter (the form 1-balance, the form 2-report about financial result, decryption debtor and кредиторской to indebtedness). (For acting enterprise-borrower, as well as guarantors)

• The Feasibility study or business plan, including marketing strategy for a period of not less pay-back period of the credit.

• The Contract on supply of the equipment (or protocol of the intentions). The Technical passport on gained equipment. Comparative feature of the similar equipment, price, capacity and others

• Contract on subcontract work (or protocol of the intentions)

• The Contracts (the protocols of the intentions) on supply cheese and material.

• The Contracts (the protocol of the intentions) on realization produced to product. The Marketing studies.

• The Documents on tap territory under construction (the agreement of the lease).

• One of the types of the provision.

• The License of production output.

• The Certificate quality on produced product.

The Given list is not exhausting at bank leaves for itself right to require the additional documents.

Hamidova F. R.

Director of the Department on co-ordinations and monitoring to investment activity of the bank Tel: (99871) 120-45-75

Rahmatullaev H. H.

Chief of Management project financing Tel: (99871) 120-36-29

Karimov O. I.

Chief Of the department financing the Small Business Tel: (99871) 120-45-32 Faxes: (99871) 120-45-32