Mashreq closes US$88 million syndicated term loan facility for Joint-Stock Commercial Bank “Agrobank”

The deal marks the first transaction for an Uzbekistan state-owned bank in the MENA region

Mashreq, a leading financial institution in the MENA region, announced the closing of a US$88 million one-year syndicated term loan facility for Joint-Stock Commercial Bank “Agrobank”.

Mashreq acted as sole coordinator, initial mandated lead arranger, bookrunner, and facility agent for the deal. Marking a debut transaction for an Uzbekistan state-owned bank in the MENA region, the facility was oversubscribed by 75%, and its proceeds will be used towards general corporate purposes.

Joel Van Dusen, Group Head of Corporate & Investment Banking at Mashreq, said, “We are pleased to have facilitated this landmark deal with Agrobank and be part of the bank’s growth journey. The collaboration reinforces Mashreq’s commitment to fostering growth in emerging markets and supporting small businesses operating in vital sectors, such as agriculture.”

The facility was initially launched at US$50 million and closed at US$88 million due to the positive market interest from investors in the Middle East, Europe, and the CIS region. The transaction is also noteworthy as it focused on markets outside of those traditionally tapped by Uzbekistan banks. The facility allows Agrobank to diversify its funding base and access new pools of liquidity. This transaction came after the various regional roadshows Mashreq has previously arranged for Agrobank.

Agrobank, one of the largest banks in Uzbekistan by equity, is directly controlled by the government through the Ministry of Finance and the Uzbekistan Fund for Reconstruction and Development (UFRD). It plays a crucial role in implementing the government scheme of providing affordable funding to farmers and agribusinesses. The bank has a wide distribution network with 171 branches, 183 mini-banks, and 346 cash offices located across the country, serving 3.6 million clients, including small businesses, commercial and agricultural enterprises, farmers, other family businesses, and individuals.