The Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO) recently loaned USD 50 million to Uzbekistan-based Joint Stock Commercial Bank Hamkorbank. Hamkorbank plans to use 70 percent of the fresh funds to finance microenterprises as well as women- and youth-run small and medium-sized enterprises (SMEs). The remaining USD 15 million will be directed to “green” projects, such as solar electricity installations. In support of the loan, FMO will advise Hamkorbank on improving its environmental, social and governance (ESG) procedures.
Founded in 1991, Hamkorbank provides deposit and lending services to “the real sector of the Uzbekistan economy, financing projects for technical and technological modernization.” As of early 2023, 61 percent of the institution’s shares are owned by private investors, and the remaining 39 percent belong to international organizations such as FMO and the World Bank Group’s International Finance Corporation (IFC). Hamkorbank has 153 branches and reports total assets of UZS 17 trillion (USD 1.4 billion) as of 2022.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN Sustainable Development Goals by funding capacity development and by placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. During the first half of 2023, FMO disbursed new investments totaling EUR 1.1 billion (USD 1.2 billion), resulting in a committed portfolio of EUR 13 billion (USD 14 billion).
By Renata Samadova, Research Associate
Sources and Additional Resources
FMO transaction data
https://www.fmo.nl/news-detail/dc0443d7-b709-463d-b5f7-6b3a4bb0161b/monthly-transaction-overview-july-2023
Hamkorbank homepage
https://hamkorbank.uz
Hamkorbank financial statements
https://hamkorbank.uz/en/financial-institutions/financial-statements
FMO homepage
https://www.fmo.nl
Previous MicroCapital article on FMO
https://www.microcapital.org/microcapital-brief-satya-of-india-borrowing-35m-from-fmo-finnfund-for-microfinance-for-rural-women-youth-including-to-enable-green-transition/
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