Vades Group, the sole manufacturer of microprocessor cards in Central Asia, will receive financing through a risk-sharing mechanism provided by the European Bank for Reconstruction and Development (EBRD) and Ipoteka Bank OTP Group. The total amount of the agreement is $10 million, of which $5 million has already been confirmed.
Andiy Aranitasi, Director of EBRD and Head in Uzbekistan, announced this agreement, which marks the first sub-credit transaction under the financed risk-sharing mechanism between EBRD and Ipoteka Bank. Under this mechanism, EBRD assumes 50 percent of the credit risk for this deal, allowing Ipoteka Bank to expand financing opportunities for domestic companies and investment projects.
Vades Group plans to use the obtained capital for operational expansion and the creation of a new production facility in the Akhganrann district of Tashkent region. The new plant will enable the company to increase the output of bank cards and identity documents, as well as strengthen local production capabilities.
Furthermore, the company intends to invest in new production lines to diversify its product range, expanding production beyond bank cards and identity documents to include SIM cards. In addition to financial assistance, Vades Group is cooperating with EBRD to receive advisory support aimed at strengthening corporate governance standards and compliance.
Vades Group has already implemented the ISO 37001 standard and is preparing for GSMA SAS-UP accreditation. Obtaining this certification is expected to allow the company to compete in international markets. This deal is Vades Group's first cooperation with EBRD as a new client of the development bank.