AFD and Sanoat Qurilish Bank (SQB) sign a €30 million agreement to encourage climate investments

Tashkent, Uzbekistan (UzDaily.com) – AFD and Sanoat Qurilish Bank (SQB) signed a €30 million agreement to encourage climate investments.

The chief executives of AFD and SQB signed a loan agreement on the occasion of the visit of the President of the Republic of Uzbekistan, Mr. Mirziyoyev, to Paris. SQB thereby becomes the first entity in Central Asia to borrow directly from AFD without a state guarantee, which is a testament to the maturity of the relationship between AFD and the Uzbek economy. 

This non-sovereign loan from AFD will contribute to SQB’s efforts to develop its investments with climate benefits. As the second largest bank in Uzbekistan, SQB has a significant weight within the Uzbek financial system, allowing it to participate in Uzbekistan’s low-carbon growth strategy.

The project is structured around two components:

- A non-sovereign loan (€30 million) to SQB to finance projects with climate co-benefits; and 

- A technical assistance program for the benefit of SQB, financed through a €400,000 grant that will be signed soon, aimed at training SQB’s staff on green finance, supporting the identification and evaluation of eligible investments and developing a green taxonomy and green finance products.

Thanks to this pioneering deal, SQB will be able to develop its green portfolio through projects that contribute to climate change mitigation and/or adaptation, and to strengthen its capacities to offer green financing.

Both companies and households will benefit from climate-friendly loans from SQB. This will contribute to Uzbekistan’s efforts to reduce its greenhouse gas emissions and to adapt to the consequences of climate change.

Vincent CAUPIN, Director of the AFD Tashkent office for Central Asia said: “SQB is the first bank of the country to place green banking at the heart of its strategy. It shows how much environment and climate are growing subjects in Uzbekistan. AFD is very proud to support SQB with instruments that will lead the bank to achieve its objectives and contribute to greening the economy.”

Sakhi Annaklichev, Chairman of the Board of SQB mentioned that “The Green banking is dynamically developing in the process of our bank transformation. The work carried out in this direction is highly appreciated by the world's largest financial institutions and corporations, which offer additional resources for these kind of projects. I am grateful to the AFD for supporting our initiatives in this direction, carried out within the framework of the strategy developed on the basis of the decree of the President of Uzbekistan to increase energy efficiency, rational use of natural resources through technological modernization with the support of financial institutions.”