Crediting of Legal Entities

Lending

KDB Bank Uzbekistan offers credit products in Local currency (UZS) and US dollars (USD) to corporates that are the residents of the Republic of Uzbekistan.

The Bank provides USD-denominated loans mainly at the expense of funds attracted from foreign financial institutions (e.g. KDB Seoul).

Credit Products:

• Loans and revolving credit lines for replenishment of working capital (e.g. purchase of raw materials, components & details, payment of utility bills, etc.)

• Loans and finance lease for purchase of fixed assets (e.g. purchase of machinery & equipment, buildings, vehicles, etc.)

• Syndicated loans together with other local and foreign banks for financing of large investment projects.

Terms & Conditions

• Loan per transaction: up to USD 20 million / UZS 250 billion

• Approximate interest rate: Term SOFR 3M + 5% p.a. (USD) / Policy rate + 8% p.a. (UZS)

• Maximum loan term: 2 years for loans to replenish working capital 5 years for loans & finance lease to purchase fixed assets

• Interest Accrual Method: From outstanding loan amount

• Interest Payment Frequency: On monthly basis

• Collateral: Buildings & structures
                         Vehicles, machinery & equipment
                         Inventory
                         Bank deposits
                         Guarantees & securities of the Government & other financial institutions
                         Other third-party guarantees and warranties

Eligibility Requirements

The Bank does not grant any loan to the companies that have suffered loss for the recent 2 (two) financial years consecutively and have weak financial state.

Required Documents:

• Loan application that contains a description of the usage purpose, amount and term of the desired loan, as well as a description of the collateral

• Credit questionnaire filled by the applicant in the form established by the Bank

• Establishment documents of the applicant (legal or charter documents)

• Business plan (feasibility study) with a detailed description of the production plan, financial plan, analysis of the sales market, pricing policy, risk assessment for the project, and forecast of cash flow for the loan period.

• Financial statements for the last 3 years and the last reporting period, including balance sheet, income statement and transcripts to them

• Appraisal report of an independent appraiser on the collateral

• Decision of the authorized body (shareholders’ meeting, supervisory board, etc.) of the applicant on obtaining a loan and providing collateral

Note: Other documents may be requested by the Bank depending on the nature of the applicant's business and the project being financed.

The client or owner of collateral object (Pledgor) is entitled to apply for step-by-step collateral release proportional to repaid credit facility amount (maintaining enough coverage ratio) or replace collateral object (still keeping sufficient coverage ratio) to the Bank (Pledgee).

Review of such application by the Bank should not take more than 30 (thirty) days.

Decision on step-by-step collateral release or replace will be made by Credit Committee and the client must be informed on the decision in writing within 3 (three) business days. In case of negative decision, valid reason also should be included.