TBC UZ offers lending, payments and other banking services via mobile phone in the Central Asian country. It will use the loan from the Global Gender-Smart Fund to boost its lending to women and women-led businesses to help them expand into more lucrative sectors. The $500 million gender-focused debt fund, launched earlier this year, offers local currency loans to financial institutions for on-lending.
One of the largest gender-lens investment funds, the GGSF is the follow-on to the Microfinance Enhancement Facility, which after 15 years shifted its focus to address the $1.7 trillion gender financing gap.
Blending finance for the fund are the International Finance Corp., the Austrian Development Bank OeEB, Germany’s BMZ, KfW Development Bank and private institutions. The loan to TBC UZ will come via Dutch impact investor Triple Jump, one of GGSF’s portfolio managers.
Digital banking
Microfinance is scarce in Uzbekistan, contributing to a massive credit access gap for small businesses. TBC UZ’s mobile-only strategy caters to Uzbekistan’s young population (60% are under age 30) and takes aim at the low penetration of mainstream banking services (just 44% of the population has a formal bank account).
TBC UZ, which has a reach of 17 million users, wants to “make an impact by expanding financial inclusion in developing markets like Uzbekistan and ensuring that easy-to-use, digital banking products are available to all,” the bank’s Nika Kurdiani said.
The deal follows a $38.2 million equity investment in July by TBC’s London Stock Exchange-listed parent company TBC Bank Group, the European Bank for Reconstruction and Development and others. A $10 million credit line and $25 million loan from Swiss impact investors responsAbility and BlueOrchard, respectively, brings TBC UZ’s total funding this year to $105 million.
Supporting female entrepreneurs
Many female entrepreneurs in Uzbekistan lack access to finance and training, tying them to low-return entrepreneurship like bakery or tailoring. TBC UZ, which has a reach of 17 million users, wants to use GGSF’s funding to boost lending for women and women-led businesses.
Also receiving funding to support female Uzbek entrepreneurs is Uzbek Leasing International, which landed a $6 million loan from EBRD. Ipak Yuli Bank received a $42 million syndicated loan from the IFC in October; one-quarter was designated to female entrepreneurs in Uzbekistan.
