EBRD and Hamkorbank support Uzbek dairy producer Tillo Domor

28-Jun-2021 - Last updated on 28-Jun-2021 at 09:53 GMT

Tillo Domor is a well-established operation in Urgench, Uzbekistan. Pic: EBRD

Related tags Dairy Ebrd

The European Bank for Reconstruction and Development (EBRD) and long-term financial partner Hamkorbank are financially contributing to the development of the dairy sector in the Khorezm region of Uzbekistan responsible for the production of nearly 10% of national milk output.

Hamkorbank is lending up to €500,000m to Tillo Domor, an Urgench based producer of dairy products, with 65% of the risk on the loan shared by the EBRD under a risk-sharing framework. With this transaction, the bank’s exposure to the company through risk-sharing products has now reached €1.5m since 2019.

The loan is supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) program financed by the Global Environmental Facility Trust Fund. A grant of $106,200 will cover energy efficiency measures designed to cut the annual consumption of water by 6,500 cubic metres and help reduce annual CO₂ emissions by 368 tonnes though natural gas savings.

Tillo Domor is a well-established operation in Urgench, where the EBRD recently opened its third office in the country.

The project benefited from advisory services financed by the European Union and by the Small Business Impact Fund.

To date, the EBRD has invested more than €2bn in 92 projects in the economy of Uzbekistan.