Financing the Development of the Green Portfolio of Sanoat Qurilish Bank

Uzbekistan, the most populous country in Central Asia, is vulnerable to climate risks, both physical and transition risks. Sanoat Qurilish Bank (SQB), as the second largest bank in the country, has a key role to play in promoting climate finance within the Uzbek banking sector. As a direct lender to companies but also to individuals, SQB has a

significant weight within the Uzbek financial system, allowing it to contribute to this reorientation of financial flows and to have a ripple effect.

By supporting SQB in its transition towards sustainable finance, AFD contributes to the consolidation of the efforts already made by SQB in this area, thereby ensuring the entrenchment of sustainable finance within SQB before its privatization takes effect.

The purpose of the project is to contribute to the development of a resilient and low-carbon economic model in Uzbekistan, by supporting the evolution of a major player of its financial system towards the financing of climate investments. The project is implemented by SQB, a public bank in the process of being privatized. It has two objectives: 

• contributing to the development of the green portfolio of SQB by financing underlying projects contributing to climate change mitigation and adaptation;
• and building the capacity of SQB in the area of climate finance, through dedicated technical support.

The project will activate the levers of sustainable and resilient growth in Uzbekistan. It will contribute to the financing of the investments required for the implementation of the national strategy of Uzbekistan against climate change. A structural effect on the local financial system is expected, thanks to the long-term commitment of a leading financial institution in favour of the promotion of climate finance in the country. The funded investments will generate impacts in terms of reducing greenhouse gas emissions and adapting the productive fabric to the effects of climate change.