The Russian private bank Sovcombank bought out the entire state-owned stake (100%) in Uzagroexportbank, which was established in 2017 in Uzbekistan to support producers and exporters in the agro-industrial sector.

According to the State Assets Management Agency (SAMA), the state-owned stake was sold as part of a public tender based on the results of an analysis by Uzagroexportbank (due diligence), as well as on the recommendations of a privatization consultant.

Grant Thornton was engaged as a consultant for the sale process and assessed by KPMG.

Interest in acquiring Uzagroexportbank was expressed by four bidders, from whom bids were received.

“Among the received bids, PJSC Sovcombank’s bid meets the requirements as a candidate directly involved in banking, able to bring not only foreign investment into the country, but also the experience of a foreign bank, modern financial products and services,” the statement reads. message.

Uzagroexportbank was established by a decree of the President of Uzbekistan dated January 24, 2017. As of January 1, the bank's assets tops 69 billion soums. Or 6 million USD (the figure decreased by 36.6% over the year), liabilities - 3 billion soums. The volume of the loan portfolio decreased to 30 billion soums, of which 17 billion soums (55.5%) are problematic (NPL). The third quarter of "Uzagroexportbank" ended with a net loss of 16.7 billion soums.

In November, the first deputy chairman of Sovcombank, Sergey Khotimsky, said that the high share of problem debt of the Uzbek bank does not matter, since we are talking about the minimum amount both in terms of price and in terms of these assets. “Troubled assets are priced in,” he added.

According to Vedomosti, after the acquisition, Sovcombank plans to increase the capital of Uzagroexportbank - the amount will be equal to the amount necessary to meet the minimum capital requirement ($10 million), the deputy chairman of the Russian bank said.

As reported in May that state-owned stakes in Poytakht Bank and Uzagroexportbank were put up for sale. The Russian Expobank was interested in buying Poytakht Bank. At the end of September, he signed a memorandum on the privatization of the state bank.