A Term Sheet defining the key commercial terms for the privatization of JSC Asakabank has been signed between the Ministry of Economy and Finance, Asakabank and the EBRD

Within the framework of the implementation of the Decree of the President of the Republic of Uzbekistan №PD-5992 dated May 12, 2020, on behalf of the Government of the Republic of Uzbekistan, the Ministry of Economy and Finance of the Republic of Uzbekistan, the European Bank for Reconstruction and Development (EBRD) and Asakabank signed a Term Sheet setting out the main commercial terms of the privatization of Asakabank JSC in order to institutionally strengthen cooperation.

In accordance with the signed Term Sheet, the EBRD is envisaged to acquire a 15 percent equity stake in Asakabank. Subject to the full completion, in the prescribed manner, of the agreed conditions, including transactional, regulatory, and corporate-legal requirements, the EBRD is expected to enter the shareholding structure of Asakabank in 2026.

This stage constitutes an integral part of the implementation of Presidential Decree No. PF-5992 dated 12 May 2020, aimed at transforming state-owned banks, improving the efficiency of state asset management, reducing financial risks, and strengthening the stability of the banking system.

Within the framework of Asakabank’s privatization, cooperation with the EBRD will cover the following key areas:

• enhancing the quality of corporate governance and strengthening the transparency of the Bank’s operations;

• introducing international standards in risk management and internal audit systems;

• strengthening the Bank’s capital base and operational resilience;

• establishing a sustainable, market-based development model aligned with commercial objectives;

• increasing the Bank’s investment attractiveness ahead of subsequent stages of privatization.

The implementation of this project will contribute to improving the efficiency of the use of state assets, strengthening international investors’ confidence in Uzbekistan’s financial market, and further developing a competitive and stable banking sector in the country.

Source: The Ministry of Economy and Finance of the Republic of Uzbekistan