IFC has converted its existing loan to Ipoteka Bank OTP Group into equity, strengthening its long-term partnership with the bank and supporting the development of Uzbekistan’s financial sector. The transaction marks a new stage in IFC’s engagement with Ipoteka Bank and reflects continued support for the country’s banking reforms.
The partnership between IFC and Ipoteka Bank began in 2016, when the Government of Uzbekistan invited IFC to support the privatization of state-owned banks. In 2017, IFC signed an advisory services agreement to help improve the bank’s corporate governance, strategy, and readiness for privatization.
As part of this engagement, IFC provided a $35 million pre-privatization convertible loan to Ipoteka Bank. The loan was structured for conversion into equity once the bank met agreed transformation milestones, which have now been successfully achieved.
The equity conversion supports IFC’s wider commitment to Uzbekistan’s privatization agenda and the development of a more competitive, market-driven banking sector. The transaction is also expected to help attract private investment into a financial system that has historically been dominated by state ownership.
Ipoteka Bank OTP Group is part of OTP Group, one of the five largest financial groups in Central and Eastern Europe. The bank supports key sectors in Uzbekistan, including energy, industry, construction, transport, and telecommunications, contributing to economic growth and helping attract global capital.
The bank said the equity conversion is an important milestone in its long-term partnership with IFC. Over the years, Ipoteka Bank has strengthened corporate governance, modernized operations, improved customer service, and expanded its role in Uzbekistan’s economic development.
IFC said the transaction reflects a decade of work supporting transformation in Uzbekistan’s banking sector. A stronger and more competitive Ipoteka Bank OTP Group is expected to improve access to finance for businesses, support job creation, and expand economic opportunities across the country.
By becoming an equity partner, IFC is deepening its role in Uzbekistan’s financial sector reform. The investment is expected to support private-sector-led banking growth, strengthen investor confidence, and contribute to a more open and competitive financial system.
