EBRD and Ipoteka Bank support Vades Group with $10 million
Vades Group will receive financing under the EBRD and Ipoteka Bank risk-sharing facility to expand production in the Tashkent region.
EBRD and Ipoteka Bank support Vades Group with $10 million
Vades Group, the only microprocessor card manufacturer in Central Asia, will receive financing under the risk-sharing facility of the European Bank for Reconstruction and Development (EBRD) and Ipoteka Bank OTP Group.
The total volume of the agreement is $10 million, with $5 million already confirmed for financing.
The signing of the agreement was announced by Andi Aranitasi, Director and Head of the EBRD Representative Office in Uzbekistan. This transaction became the first under the funded risk-sharing program between the EBRD and Ipoteka Bank.
Under the Risk Sharing Facility (RSF), the EBRD assumes 50% of the credit risk of the transaction. This mechanism enables Ipoteka Bank to expand financing for local companies and investment projects.
Vades Group will use the raised funds to expand its business and construct a new manufacturing facility in the Akhangaran district of the Tashkent region.
The new plant will allow the company to increase its capacity for producing bank cards and identity documents, as well as contribute to the development of local manufacturing.
The company also intends to invest in new production lines and expand its product range. In addition to bank cards and identity documents, this includes the production of SIM cards.
In addition to financial support, Vades Group, with advisory assistance from the EBRD, is working to strengthen its corporate governance and compliance standards.
The company has already implemented the ISO 37001 standard and is preparing for GSMA SAS-UP accreditation. Obtaining this accreditation will allow Vades Group to enter new international markets.
For Vades Group, this agreement marked the beginning of cooperation with the EBRD as a new client of the development bank.
In turn, for the Risk Sharing Facility between Ipoteka Bank OTP Group and the EBRD, this transaction became the first sub-loan.
The financing is intended to support the expansion of Vades Group's production capacity and the implementation of the new facility project in the Tashkent region.