Mashreq Closes US$88 Million Debut Deal for Agrobank 

With Senior EVP, Group General Counsel, Marouf Mohamed Shweikeh (pictured), at the helm of its legal department, Mashreq, a prominent financial institution in the MENA region, has recently concluded a significant transaction by finalizing a US$88 million one-year syndicated term loan facility for Joint-Stock Commercial Bank “Agrobank.” Acting as the sole coordinator, initial mandated lead arranger, bookrunner, and facility agent for the deal, Mashreq has facilitated a landmark opportunity for Agrobank, marking its debut transaction for an Uzbekistan state-owned bank in the MENA region. 

This syndicated term loan facility, which was oversubscribed by an impressive 75%, reflects the positive market interest from investors in the Middle East, Europe, and the Commonwealth of Independent States (CIS) region. The proceeds from this transaction are intended for general corporate purposes, highlighting Mashreq’s commitment to fostering growth in emerging markets and supporting small businesses, particularly those operating in vital sectors such as agriculture. 

Joel Van Dusen, Group Head of Corporate & Investment Banking at Mashreq, expressed satisfaction with the collaboration, stating, “We are pleased to have facilitated this landmark deal with Agrobank and be part of the bank’s growth journey. The collaboration reinforces Mashreq’s commitment to fostering growth in emerging markets and supporting small businesses operating in vital sectors, such as agriculture.” 

Initially launched at US$50 million, the facility was increased to US$88 million due to the overwhelming market interest. This transaction is noteworthy not only for its substantial oversubscription but also for its focus on markets outside of those traditionally tapped by Uzbekistan banks. By diversifying its funding base and accessing new pools of liquidity, Agrobank is poised to strengthen its position in the financial landscape. 

Agrobank, being one of the most prominent banks in Uzbekistan by equity, plays a pivotal role in implementing government schemes aimed at providing affordable funding to farmers and agribusinesses. With a wide distribution network comprising 171 branches, 183 mini-banks, and 346 cash offices across the country, Agrobank serves 3.6 million clients, including small businesses, commercial and agricultural enterprises, farmers, family businesses, and individuals.