INVESTMENT PROPOSAL of Joint-Stock Commercial Bank « MICROCREDITBANK » UZBEKISTAN

1. INVESTMENT PROPOSAL of Joint-Stock Commercial Bank «MICROCREDITBANK» UZBEKISTAN

2. General information on banking sector of Uzbekistan Today 26 banks functioning in the banking sector of Uzbekistan: 3State commercial banks, 11 Commercial banks, 8private banks4banks with foreign capital. According to 2015, their total Assets increased by 25,1% and amounted to 23,2 billion USD. Total capital of commercial banks amounted to almost 23,3%; Investment credits increased 1,2 times and amounted to 3,6 billion USD; Credits rendered to real sector of economy increased by 27,3% and amounted to 15,1 billion USD. Credits extended to small business and private entrepreneurship increased 1,3 times and amounted to 4,3 billion USD., of which microcredits amounted to 800 million USD that 1,3 times higher as compared to 2014; Credits extended to graduates of vocational colleges increased 1,4 times and amounted to 98,8 million USD; Balances of deposits increased by 28% and amounted to 12,6 billion USD.

3. Aim of creation of Microcreditbank Joint-Stock Commercial bank “Microcreditbank”was established in accordance with the Decree of the President of the Republic of Uzbekistan dated May 5, 2006 N 3750 “On establishement of Joint-Stock Commercial bank “Microcreditbank” with the view of creating new jobs through development of small business, private entrepreneurship and farming; promotion of self-employment, family business and workmanship, and ensuring the access of wide groups of population to microfinance resources especially in rural areas.

4. Furthermore, the followings were adopted: !

6. Bank’s network of 85 branches,140 minibanksand 24 agencies all over the country have being providing wide range of banking services to 220 000 clients. Bank provides all kinds of banking services to its clients. Microcreditbank is leading bank in microfinance and plays sufficient role in development of the sector of microfinance. Bank provides both privileged credits and corporate loans as well. Bank network, branches

9. Microfinance services rendered by spheres in 2015

10. Cooperation with International organizations. Bank is cooperating with world Bank, International Development Association, International fund for agricultural development, Islamic Development of Private Sector. Bank attracted grants of UNDP, International organization for German Cooperation. The bank is a member of World Microfinance Center, Asian Bankers Association and Russian Microfinance centre. Worldwide acknowledgement International rating company «Fitch Ratings» assigns the Bank with «B» level rating with «Stable» outlook every year. According to the ranking issued by the Micro-Capital Market Bulletin published in Boston (USA) in 2012, Microcreditbank was found the 5th among the top 10 of the 151 Central Asian and European micro-credit banks. According to report of MIX-MARKET Agency Microcreditbank is among the 100 best banks by volume of micro-crediting and is assessed as the 5 diamond bank.

11. Projection of Main Indicators for 5 years(million USD equivalent)

12. Analysis of Investment Attractiveness of Project Banking activity regulation policy conducted by the Government страны creates all necessary conditions for dynamic market development. The stated measures shall be key factors in formation of modern, full-fledged and competitive market for banking services. Comprehensive work is implemented to improve the banking legislation, to raise quality of banking services, to ensure high degree of financial stability of banks as well as implementation of international of standards and principles regulation and supervision for banking activity. JSCB «Mikrokreditbank» is a universal commercial bank which carries out all kinds of banking operations represented in financial services market including servicing of private and corporate clients. «Mikrokreditbank» represent high business activity in the financial market, dynamically developing commercial network, adequate capitalization, balanced liquidity position, rapid growth of assets of the bank and preserving geographic concentration of business. Clear strategy aimed at expansion of business scales and strengthening positions of the bank in the market as well as support of shareholders gives additional stability to bank’s business.

13. Conclusions and Recommendations Taking into consideration positive prospects of development of the bank, main advantages for strategic investors shall be: - Existence of the corporate management system which enables to ensure maximum transparency of activity of the bank and to adequately assess risks; - Existence of bank’s wide regional network via which the bank is represented practically in all regions of the republic; - Historically established client base of the bank; - Long sustainable growth of main indicators of the bank; - Not too high capitalization compared with banks of developed countries worldwide which enables an investor to enter the banking market of Uzbekistan gaining notable market share by investing relatively insignificant resources; - Financial stability and solvency of the bank confirmed with high rating and presence in the official stock exchange listing; - Well-deserved reputation and established image among clients for 22 years activity of the bank.

14. Thanks for attention! Contact Information: 14, Lutfiy Street, Tashkent, Republic of Uzbekistan Tel.: (+998 71) 273-96-29, 202 99 99, ext.: 1137, 1140 Fax: (+998 71) 273-28-11, 273-96-29 www.mikrokreditbank.uz, e-mail: Office@mikrokreditbank.uz SWIFT: MICDUZ22; THOMSON REUTERS: UZ 02568