Tashkent, Uzbekistan (UzDaily.com) -- VTB Group, State Enterprise Navoi Mining and Metallurgy Combine (NGMK) and JSC NGMK have signed an agreement on cooperation in financing the Navoi Mining and Metallurgical Enterprise. 

The document was signed by the President and Chairman of the Board of VTB Bank Andrey Kostin and General Director of NGMK Kuvandik Sanakulov. The ceremony took place within the framework of the forum "Uzbekistan: Achievements of Economic Reforms and Prospects" in Tashkent.

NGMK is the largest mining enterprise in Uzbekistan, the plant specializes in the extraction and processing of gold. The production volume is about 80 tons of gold per year.

The document includes the main conditions for financing the NGMK by VTB Bank, within the framework of which the parties plan to finance the investment program of the plant. The total volume of the credit line will amount to US$1 billion for a period of 5 years.

“VTB works with the largest banks of Uzbekistan in terms of trade and export financing, we also acted as the organizer of the successful placement of the republic’s Eurobonds for US$750 million. The agreement with the Navoi plant is the largest transaction for VTB in Uzbekistan. We hope that it will open up new opportunities for the development of the enterprise, the entire mining and metallurgical industry and related industries of the country. We are ready to provide our colleagues not only with financial leverage, but also deep expertise on the implementation of the investment program, as well as work in the international capital markets along with the implementation of the ESG agenda,” said Andrey Kostin, President and Chairman of the Board of VTB Bank

“Within the framework of improving the investment potential of the Republic of Uzbekistan, attracting foreign direct investment for the development of the country, it is extremely important to maintain the existing and deepen further cooperation with international financial institutions. VTB Bank is our long-term partner, which helped in raising funds by placing Eurobonds of the Republic in the amount of US$750 million. In turn, the current deal with NGMK is the first and largest transaction to attract long-term financing for NMMC, and it is also the largest one-time attraction of borrowed funds for business development among all state-controlled enterprises. The deal became possible due to the large-scale transformation of the mining sector and NMMC in particular, launched in 2018. The transformation of the company is expected to be completed by the end of 2021. We also hope for further deepening of cooperation with VTB and other international financial institutions in every sector of the economy,” said Jamshid Kuchkarov, Chairman of the Supervisory Board of the NGMK, Deputy Prime Minister, Minister of Economic Development and Poverty Reduction of Uzbekistan.