Tashkent, Uzbekistan, April 7, 2025 – The Global Green Growth Institute (GGGI) and Agrobank, under the leadership of GGGI’s Director-General, Sang-Hyup Kim, and Chairman of Agrobank, Erkin Kakhorov, signed a Cooperation Agreement to ensure continued and coordinated support for green economic growth in Uzbekistan.
Under this agreement, GGGI will support Agrobank in the development of green financial products and facilitate access to the Green Climate Fund (GCF), the Adaptation Fund, and other relevant funds, while both parties will work towards integrating green growth principles into Agrobank’s operations.
Additionally, GGGI aims to support Agrobank in the green bond post-issuance process, working closely to create Allocation and Impact Reports that detail the use of proceeds and project selection criteria for the first year. Issued in 2024 through joint efforts of Agrobank and GGGI, the $445 million green bond will promote green growth, as 80% of it will be allocated to Climate Smart Agriculture practices in Uzbekistan, supporting the farmers committed to the green cause, efforts to reduce water consumption and mitigate the impacts of climate change in the country.
“When it comes to green finance, 3 things are important – the green finance trinity. It includes leadership of the government, the capacity and competence of financial institutions, participation of the real economic sector, and Uzbekistan has all three with Agrobank representing the capable and competent financial institutions. We had the pleasure of working with you on the green bond successful issuance last year and hope to deepen our cooperation this year,” GGGI’s Director-General Sang-Hyup Kim shared.
“The collaboration we established for green bond issuance last year is just the beginning. There is still much to be done to 'green' the finance sector in Uzbekistan. We are confident that the outcome of our cooperation will contribute to the prosperity of our people and strengthen the relations between Korea and Uzbekistan,” concluded Chairman of Agrobank, Erkin Kakhorov.
This Cooperation Agreement marks another milestone in Uzbekistan’s green transition and reflects the shared commitment of GGGI and Agrobank to building a more sustainable, climate-resilient future. By strengthening green finance mechanisms and supporting climate-smart investments, the partnership will help empower farmers, protect natural resources, and accelerate inclusive green growth across the country.
Background:
In 2024, GGGI acted as Green Structuring Advisor assisting Agrobank in developing the Green Finance Framework to issue the first green bond for the bank. This assistance included securing an SPO with an Excellent rating and addressing investors' ESG queries during 65+ meetings and in the roadshows. With the hard work from Agrobank and GGGI’s support, the joint efforts led to the successful issuance of the first green Eurobond with a value of USD 455 million, of which USD 400 million is in a five-year bond alongside UZS 700 billion in a two-year tranche (USD 55 million). This was made possible with the support of KOICA through the ‘Green Rehabilitation Investment Project for Karakalpakstan Republic to address impacts of the Aral Sea crisis’ (Aral Sea GRIP)’, as well as the assistance of the government of the Grand Duchy of Luxembourg via the Global Trust Fund for Sustainable Finance Instruments (GTF).
Find updates on the Aral Sea GRIP project: https://ggkp.org/aralseagrip
Read more about GGGI: https://gggi.org/