EBRD Approves US$29 Million Loan for Khorezm Insulation Group

Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) will provide substantial financial support to the Khorezm Insulation Group (KIG) joint venture LLC, recognized as one of the leading manufacturers of basalt thermal insulation panels in Uzbekistan.

The allocated loan of up to US$29 million (25 million euros) will be used for the comprehensive improvement of the company's financial position by restructuring its balance sheet, as well as for financing a large-scale program to expand production capacity.

The attracted funds will allow the enterprise to purchase modern specialized equipment and launch a high-tech production line. As a result of the modernization, KIG plans to increase the capacity of its main plant in Urgench more than threefold, from the current 30,000 tonnes to 100,000 tonnes of basalt thermal insulation panels per year.

This will not only increase operational efficiency and product quality but will also allow the company to strengthen its presence in domestic and regional markets, promptly satisfying the growing demand for building materials in Uzbekistan and other Central Asian states.

This project completely aligns with the long-term strategy of the EBRD, which is aimed at the comprehensive support of the private sector and the accelerated development of a green economy in the republic. To date, total EBRD investments in the economy of Uzbekistan are approaching the mark of US$6.9 billion (6 billion euros) across the implementation of 210 projects.

At the same time, most of the capital is traditionally directed toward supporting private entrepreneurship, thanks to which the country has steadily maintained its status as the largest recipient of EBRD financing in all of Central Asia over the past six years.