Tashkent, Uzbekistan (UzDaily.com) -- The German Financial Development Institute (Deutsche Investitions- und Entwicklungsgesellschaft mbH, DEG) and Triodos Investment Management (through their Triodos Microfinance Fund) have invested about US$25 million in the share capital of Bank Ipak Yuli.

Foreign investors acquired an equal minority share of the bank’s share capital from Uzbekistan through the purchase of new issued shares, which represents their first investment in a bank’s share capital in Uzbekistan.

According to Bank Ipak Yuli, the investments will be used to strengthen the bank’s capital base, as well as to meet the financial needs of private sector companies in Uzbekistan.

“The large-scale reforms carried out in recent years, initiated by the President of the Republic of Uzbekistan, in particular the tasks set to increase the investment potential of the financial sector, have contributed to an increase in the interest of foreign investors in the banking sector. We are glad that two reputable European financial institutions are becoming shareholders of Bank Ipak Yuli, this brings our mutually beneficial cooperation, which began in 2015, to a new level of strategic partnership. We believe that investments in the equity capital of Bank Ipak Yuli demonstrate confidence not only in the bank, but also in the banking sector of Uzbekistan, and will help attract new foreign investors to this sector, "said Saidabror Saidakhmedov, Chairman of the Board of Bank Ipak Yuli. “The knowledge and experience of our new shareholders will provide additional support in achieving significant improvements in the quality and efficiency of our operations, as well as in the institutional transformation initiated with the assistance of the Asian Development Bank, which is the first development financial institution-shareholder of the bank.”

“This is the next step in our long-term and trusting cooperation with Bank Ipak Yuli. We look forward to working with the bank’s management and all shareholders to ensure the continued growth of the bank for the benefit of Bank Ipak Yuli’s clients and the Uzbek financial sector. We are delighted that DEG’s investment will enable additional financing for small and medium-sized enterprises and retail clients, taking into account environmental and social standards,” said Ms. Monica Beck, DEG Board Member.

Mr. Tim Cranes, Triodos Microfinance Fund Manager: “This is an exciting new equity investment for the Triodos Microfinance Fund. Focusing on the small and medium business sector, Bank Ipak Yuli will increasingly support private entrepreneurship and thereby contribute to the development of a market economy in Uzbekistan. We are looking forward to the opportunity to start working with Bank Ipak Yuli to expand our activities, as well as share our experience in introducing sustainable banking and take part in the management and strategic development of Bank Ipak Yuli.