Standard Chartered Bank has arranged a €132.5 million financing package for Joint-Stock Company “O’zbekiston Metallurgiya Kombinat” (Uzmetkombinat), Uzbekistan’s largest steel producer, to support the completion of its new Casting and Rolling Complex in Bekabad, southern Uzbekistan.
The transaction is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is providing insurance coverage to mitigate investment risks. Standard Chartered acted as Global Coordinator, Facility Agent, and Mandated Lead Arranger.
The proceeds will finance the construction of Uzbekistan’s first facility for producing hot-rolled coils (HRCs) — a major step toward import substitution in the country’s steel industry. The new plant will supply HRCs for pipe manufacturing and construction companies, reducing costs and improving supply chain efficiency for domestic consumers.
Uzmetkombinat employs over 8,000 people and is one of the largest industrial employers in Bekabad, a town of 100,000 residents. The company accounts for more than one-third of Uzbekistan’s ferrous metal consumption, playing a vital role in national infrastructure and industrial development.
Desislava Radeva, Executive Director, Development and Agency Finance at Standard Chartered, said the deal demonstrates the bank’s commitment to driving sustainable industrial growth in emerging markets.
“Steel production is a key strategic industry for Uzbekistan, and the domestic sourcing of HRCs represents a huge leap forward for the country,” she said. “This project is a strong example of Standard Chartered’s expertise in driving prosperity in some of the world’s most dynamic markets.”
Dr. Khalid Khalafalla, CEO of ICIEC, emphasized that the project will enhance Uzbekistan’s self-sufficiency and supply chain resilience:
“By providing insurance coverage for this facility, we are enabling Uzbekistan to expand its domestic steel capacity, reduce import dependency, and strengthen its industrial base while creating jobs and uplifting local communities.”
Bakhodir Abdullaev, CEO of Uzmetkombinat, said the project marks a “new chapter” for the company and the country’s industrial sector.
“The launch of the first domestic hot-rolled coil production will reinforce local supply chains and inject new momentum into Uzbekistan’s economy,” Abdullaev stated.
This marks Standard Chartered’s second project with ICIEC in Uzbekistan, following a €160.4 million Islamic financing facility extended to Agrobank to support small and medium-sized enterprise (SME) growth.
