Mortgage Bank and "Uzbekneftegaz" have announced a $60 million loan agreement.

The Mortgage Bank and JSC "Uzbekneftegaz" have signed a loan agreement amounting to $60 million. The three-year contract aims to provide working capital for one of Uzbekistan's largest oil and gas companies and support the ongoing economic reforms in the country.

Irakli Elashvili, advisor to the board of the Mortgage Bank (OTP Group), noted in an interview with Daryo.uz that:

This agreement contributes to the further development of economic transformations in Uzbekistan. We are proud to be the largest private local banking partner of JSC "Uzbekneftegaz".

The Mortgage Bank, part of the international OTP Group, is strengthening its position in Uzbekistan's energy sector while continuing to support key projects vital to the country's economy.

"Uzbekneftegaz" and its Contribution to the Development of Uzbekistan's Energy Sector

Founded in 1992, "Uzbekneftegaz" plays a crucial role in Uzbekistan's energy sector. It is responsible for hydrocarbon extraction, petrochemical production, and the export of refined petroleum products.

As Elashvili pointed out, collaboration with "Uzbekneftegaz" underscores the company's commitment to transparency principles, as evidenced by the issuance of eurobonds. This makes it an ideal partner for the Mortgage Bank.

"Uzbekneftegaz" is a new client for the Mortgage Bank and an important player in the market. Their financial transparency is impressive, which gives us confidence in this partnership. This deal also reflects the strict standards that OTP Group applies to all its operations,

— emphasized Elashvili.

He also added:

We held close consultations with "Uzbekneftegaz" to understand their needs and tailored this loan to their working capital requirements. Finalizing the deal just before the New Year, during such an intense period, was a significant achievement for all participants.

The agreement was signed on December 19, 2024, in Tashkent.

Diversification and Looking Ahead

This loan became one of the largest transactions for the Mortgage Bank in 2023 and is part of its diversification strategy across various sectors of the economy:

Energy is a critically important sector for the economy, and we intend to continue supporting it. Additionally, we have exciting projects in other sectors that we will share in the new year. Diversification remains a priority direction of our strategy.

Responding to a question about the bank's future plans in the energy sector, Elashvili emphasized:

This loan does not fall under green financing; however, we observe global interest in sustainable development for energy companies. This area draws our particular attention.

The Role of the Private Sector in Uzbekistan's Economic Growth

Irakli Elashvili highlighted the significance of private and international participants in supporting privatization in Uzbekistan.

Privatization is a key element of the country's economic growth. OTP Group, as the first international financial organization in the Uzbek market, brings its global experience and stringent client assessment standards. This benefits not only our clients but the entire economy,

— he emphasized.

Elashvili also stressed the need to increase the number of private banks in Uzbekistan:

The presence of more private and international banks would facilitate co-financing of large-scale projects. With our Western experience and high standards, we are aiding the transformation of the financial sector, making it more competitive and globally oriented.

Speaking about the advantages of competition, he added:

We are facilitating the alignment of Uzbekistan's financial system with global standards. Increasing the number of private and international participants will not only accelerate economic development but also enhance the transparency of the financial market.

With optimism for the future, the Mortgage Bank continues to actively support Uzbekistan's economic growth.

This deal has become a powerful start for us in the new year,

— concluded Elashvili. —

We are ready to harness this momentum and contribute further to the country's economic development.