TBC Bank Uzbekistan will use the funds to boost its lending efforts to promote financial inclusion in Central Asia’s most populous country, with a focus on small- and medium-sized businesses.
A fund managed by Swiss impact investor BlueOrchard has provided $20m (€18.2m) in debt financing to TBC Bank Uzbekistan, taking its total commitment to the country’s largest digital bank to $45m. The initial $25m deal was signed in August.
The money will be used to boost the bank’s lending efforts and promote financial inclusion in Uzbekistan, with a focus on growing its offering for small and medium sized enterprises (SMEs).
“We are looking forward to deepening our relationship with TBC, whose mission to expand financial inclusion in Uzbekistan closely aligns with our values. We are confident that this additional funding will enable TBC UZ to further drive economic growth for entrepreneurs and small businesses in the region,” said Philipp Mueller, CEO of BlueOrchard.
Diversify customer base
TBC Bank Uzbekistan, which forms part of London-listed TBC Bank Group, is one of the leading digital lenders in Central Asia. The bank, which made a profit just two years after its launch, has more than 18 million unique registered users.
“We are delighted to have the opportunity to strengthen our relationship with BlueOrchard, a truly valued partner, and secure additional funding at a time when we are gearing up to launch our lending offering for SMEs,” said Nika Kurdiani, CEO of TBC Uzbekistan.
Kurdiani went on to say the additional investment will allow the bank to further diversify its funding base, and provide Uzbekistan’s SMEs with quick and easy access to the loans they need.
Since its foundation in 2001, BlueOrchard, a member of the Schroders Group, has invested more than $11bn across more than 100 countries, supporting more than 300 million people in emerging and frontier markets.
As previously reported by Impact Investor, the Global Gender-Smart Fund (GGSF) committed $10m to TBC Bank Uzbekistan to boost financial inclusion in December. The funding for the digital bank came from GGSF via one of its portfolio managers, Triple Jump, a Dutch impact-focused investment manager dedicated to creating positive change in emerging markets.
