Construction

Form of Lending: Without opening a credit line (one-time issuance/disbursement in tranches).

Loan purpose

§ Construction of fixed assets for the enterprise’s own production needs, reconstruction, and ongoing repairs of the facility;

§ Construction of multi-storey and individual residential houses, non-residential buildings, and structures for subsequent sale;

§ Execution of construction works based on a contract agreement.

Method of Lending: Non-cash transfer of funds to the current accounts of suppliers/contractors/subcontractors from the client’s loan account in accordance with the provided purchase agreements.

Loan Terms and Grace Period for Principal Repayment:

§ Construction and reconstruction (reprofiling, restructuring) of fixed assets for the enterprise’s own production needs — up to 36 months, including a grace period of up to 12 months;

§ Construction of multi-storey and individual residential houses, non-residential buildings, and structures for subsequent sale — up to 24 months, including a grace period of up to 12 months;

§ Execution of construction works under a contract, ongoing and capital repairs of a facility — up to 18 months, including a grace period of up to 6 months.

Grace Period for Interest Payment: not provided

Loan Currency:

§ National currency of the Republic of Uzbekistan — Uzbek som.

§ Foreign currency.

Interest Rate: From 23.99% for loans in national currency;

                        From 12.99% for loans in foreign currency.

Minimum Loan Amount: not established.

Maximum Loan Amount: No more than 70% of the total estimated construction cost, with the loan amount calculated individually based on the client’s creditworthiness, within the framework of the economic regulations of the Central Bank of the Republic of Uzbekistan.

Loan Repayment: Monthly, through annuity or differentiated payments.

Acceptable Types of Collateral:

§ Pledge of funds in freely convertible and national currency held in accounts opened at JSC “InFinBank”;

§ Guarantees from banks and insurance companies;

§ Pledge of movable/immovable property;

§ Pledge of property rights (claims);

§ Pledge of government securities, Central Bank of the Republic of Uzbekistan securities, other securities not prohibited by current legislation, and shares in charter funds;

§ Objects being constructed with the loan funds;

§ Guarantees from third parties with verified solvency and financial reliability;

§ Insurance policies of financially stable insurance companies;

§ Other types of collateral not prohibited by current legislation.

Collateral Coverage Ratio:

At least 125% of the loan amount (130% for borrowers related to the bank).

Mandatory Requirements for the Borrower and its Activities:

§ The period of state registration as a business entity must be at least 6 months;

§ Availability of a primary or secondary demand deposit account at JSC “InFinBank”;

§ No negative credit history;

§ Sufficiency of projected cash flows of the borrower to ensure timely loan repayment;

§ The borrower’s balance sheet must be liquid, and operations must be profitable;

§ To carry out construction work on buildings and structures classified as categories III-IV (including multi-story residential buildings) in terms of seismic safety, the construction contractor must have a category of “CCC” or higher (including all categories of types ‘A’ and “B”) in the Electronic Rating of Construction Contractors in accordance with the Decree of the President of the Republic of Uzbekistan dated May 16, 2023. №PD-158;

§ In order to carry out the construction of multi-storey residential buildings within the framework of targeted programmes, a construction and contracting organisation must have a category of “C” or higher in the Electronic Rating of Construction and Contracting Organisations in accordance with the Protocol of the meeting following the working visit of the President of the Republic of Uzbekistan to the city of Tashkent on 10 August 2022. (reg.: dated August 29, 2022, No. 64);

§ Other requirements established in the Bank’s local regulatory acts.

List of Documents Provided by the Borrower:

§ Loan application specifying all lending terms and collateral requirements;

§ Certificate of state registration of the borrower;

§ Copy of the charter and founding documents of the enterprise, including all amendments;

§ Copy of documents confirming the authority of the person to sign the loan agreement on behalf of the borrower, if the person acts as the borrower’s representative, including signature specimens;

§ Financial statements in the form of a balance sheet and income statement for the last financial year, as well as for the first day of the current month, breakdown of fixed assets, accounts receivable, and accounts payable.

§ Feasibility study (technical and economic justification) or business plan for the project;

§ Resolution of the borrower’s authorized body on attracting the required loan amount under the relevant terms and providing collateral;

§ If the borrower has accounts in other banks, certificates from servicing banks confirming the absence/presence of arrears on loans, leasing, letters of credit, and other obligations, as well as information on turnovers for the past 12 months in the form of a bank letter with an electronic breakdown;

§ Contracts to be paid under the requested loan;

§ Documents on provided collateral, in accordance with the Bank’s local regulatory requirements.

§ Construction-related documents, including:

- Documents for land allocation for construction and/or other documents justifying the right to carry out construction on the respective plot;

- Permits for repurposing, restructuring, or reconstructing buildings and structures, as well as designing additional buildings and structures on the property, issued in accordance with established procedures via Public Service Centers or UPIPS;

- Document confirming ownership of buildings and structures (set of cadastral documents) — for reconstruction, repurposing, restructuring, or repairs;

- Technical inspection reports of buildings and structures — for reconstruction, repurposing, restructuring, and major repairs;

- Defect report, if reconstruction or repair of the project facility is required — for reconstruction, repurposing, restructuring, and both major and current repairs;

- Architectural and planning assignment for designing construction or reconstruction (repurposing, restructuring) of the facility;

- Conclusion on engineering and geological conditions of the construction site;

- Protocol of the Urban Planning Council at the regional construction and housing-utilities authority on the approval of design and construction documentation;

- Positive conclusions from specialized expert units of the Ministry of Ecology, Environmental Protection and Climate Change (State Environmental Expertise Center and its regional subdivisions);

- Design and estimate documentation (working design and cost estimates), prepared by a design organization, with the attached license;

- Positive conclusions of state expertise on design and estimate documentation, entered into the “Unified Register of Expert Conclusions” in the national information system “Shaffof qurilish”;

- Extract from the registration of the object for the commencement of construction and installation works, issued by the territorial construction control inspectorates of the Ministry of Construction through the State Service Centers or UPIPS and recorded in the national information system “Shaffof qurilish”;

- Contract for architectural supervision with the design organization, with attached license;

- Contracts for construction and installation works, with the license of the contracting organization attached (when performing certain licensed types of construction and installation works).

The terms of lending under this product using borrowed funds are determined based on the conditions of the attracted credit lines.