Mashreq, a prominent financial institution in the MENA region, has successfully concluded a US$88 million one-year syndicated term loan facility for Joint-Stock Commercial Bank “Agrobank.”
In a landmark transaction, Mashreq served as the sole coordinator, initial mandated lead arranger, bookrunner, and facility agent for the deal, marking the debut of an Uzbekistan state-owned bank in the MENA region. The facility, oversubscribed by an impressive 75%, signifies a significant milestone for Agrobank and underscores Mashreq’s commitment to supporting growth in emerging markets.
Joel Van Dusen, Group Head of Corporate & Investment Banking at Mashreq, expressed satisfaction at facilitating this groundbreaking deal, emphasizing the bank’s dedication to fostering growth in vital sectors like agriculture and supporting small businesses. The syndicated facility, tailored for Agrobank’s general corporate purposes, attracted substantial interest from investors across the Middle East, Europe, and the CIS region.
Initially launched at US$50 million, the facility’s overwhelming success led to its closure at US$88 million, reflecting the positive market sentiment towards Agrobank and underscoring Mashreq’s prowess in structuring and executing complex financial transactions. Notably, the transaction ventured into markets traditionally unexplored by Uzbekistan banks, showcasing Agrobank’s strategic initiative to diversify its funding sources and tap into new liquidity pools.
This milestone transaction follows a series of regional roadshows organized by Mashreq for Agrobank, highlighting the bank’s commitment to enhancing its global footprint and attracting investment from diverse geographical regions.
Agrobank, a pivotal player in Uzbekistan’s banking landscape, operates under direct government control through the Ministry of Finance and the Uzbekistan Fund for Reconstruction and Development (UFRD). With a vast distribution network comprising 171 branches, 183 mini-banks, and 346 cash offices nationwide, Agrobank serves a diverse clientele of 3.6 million, including small businesses, agricultural enterprises, farmers, and individuals. The bank’s mandate to provide affordable funding to farmers and agribusinesses aligns with the government’s broader agenda of promoting economic development and sustainability.