BAKU, Azerbaijan, Mar. 6
By Ilkin Seyfaddini - Trend:
The European Bank for Reconstruction and Development (EBRD) has become a shareholder in Korzinka.uz supermarket chain to "boost the appetite" for such projects in Uzbekistan, Head of the bank's representative office in Uzbekistan Alkis Drakinos said at a briefing, Trend reports citing Uzbek media.
EBRD is investing up to $40 million by purchasing a minority stake from Singapore-based Anglesey Investments PTE. LTD, which is the owner of FE Anglesey Food LLC operating about 50 shops under brands Korzinka.uz throughout Uzbekistan.
The bank always adheres to the principle of being a minority shareholder, he said.
"We have up to $40 million in investments planned for this project. We have already invested $20 million. As the investments grow, the value of the company will also grow. Our investment will not exceed a certain threshold of 25 percent," he added.
The European Bank for Reconstruction and Development also looks at the shares in two banks in Uzbekistan.
Thus, the organization wants to support the privatization of the banking sector, Alkis Drakinos said. In particular, the EBRD plans to buy stakes in Asakabank and Alokabank.
“A comprehensive legal review of Asakabank is currently underway, because it is a priority for the transformation leading to privatization,” Drakinos explained adding that then there will be "Alokabank".
The European Bank for Reconstruction and Development seeks to promote private sector development in Uzbekistan. In 2019 alone, the bank invested over 500 million euros in 13 projects in Uzbekistan, 9 of which were in the private sector. To date, EBRD has invested 1.85 billion euros in the economy of Uzbekistan within 79 projects.
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