November 25, 2024 – Agrobank Achieves Significant Milestone

Agrobank, Uzbekistan’s third-largest bank, has achieved another significant milestone by successfully closing its multi-currency green syndicated loan transaction. The landmark deal raised a total of USD250 million, comprising USD160 million, EUR31 million, JPY4,026 million, as well as CNH 222 million, marking a key step in Agrobank’s strategic growth and commitment to sustainable finance.

The transaction attracted robust demand from 18 investors, resulting in an oversubscribed order book exceeding $375 million. This resounding success underscores the growing international confidence in Uzbekistan’s financial market and Agrobank’s promising future.

Finasia Capital’s Strategic Role

Finasia Capital is proud to have served as the exclusive financial advisor to Agrobank, providing comprehensive support throughout the transaction lifecycle.

The project began with an in-depth analysis of Agrobank’s financial position and funding requirements. In a historic first for Uzbekistan, Finasia Capital introduced the practice of mandating banks for loan and bond transactions simultaneously. This innovative approach worked very well to attract strong interest from the market, with Agrobank completing its highly successful USD400m Eurobond issuance on 25 September 2024.

For both the green bond and the green syndicated loan transaction, Finasia Capital played a pivotal role in helping Agrobank select top-tier international banks through a competitive process. The strategic selection of these banks aimed to ensure diverse participation from global investors spanning the US, Europe, the UK, Southeast Asia, and the Middle East.

Finasia Capital also supported the bank to develop its inaugural “Green Finance Framework,” designed to align with the ICMA Green Bond Principles and LMA/LSTA/APLMA Green Loan Principles. A second-party opinion from Sustainable Fitch, with an “Excellent” alignment rating on all five pillars, further bolstered the framework’s credibility, enabling participation from green and ESG-focused lenders.

Robust Demand and Strategic Outcomes

The meticulous structuring of the transaction and an intensive marketing effort culminated in an unprecedented demand of over $375 million – the highest ever for a transaction involving a financial institution in Uzbekistan. Finasia Capital’s active involvement included coordinating all stakeholders, helping Agrobank prepare essential documents, investor presentations, and facilitate negotiations.

The marketing campaign, including bank and investor meetings and a non-deal roadshow held from August 2–6, 2024, in the UAE, was instrumental in securing strong interest, particularly from Middle Eastern investors. Agrobank’s management team, supported by Finasia Capital, successfully highlighted the bank’s strengths and Uzbekistan’s economic potential to international stakeholders.

A Transformative Transaction for Agrobank

This Green Syndicated Loan not only secures critical financial resources for Agrobank but also establishes lasting partnerships with leading international banks, further expanding the bank’s investor base, and diversifying its funding portfolio by instrument type and currency.

The success of this transaction reinforces Agrobank’s reputation as a leading financial institution in Uzbekistan and highlights Finasia Capital’s commitment to delivering innovative and impactful financial advisory services.