EBRD backs Auto Rubber expansion in Uzbekistan with up to U.S. $10 million loan
Uzbekistan is drawing further development finance for private industrial growth as Auto Rubber moves to expand its automotive components business. The funding is aimed at broadening local production capacity while also supporting governance reforms and gender equality measures at the company.
Highlights
- EBRD extends up to U.S. $10 million loan to Auto Rubber in Uzbekistan to expand and localise rubber component production facilities.
- Project includes installation of new equipment for semi-finished product manufacturing and a rubber-compound line, supporting Auto Rubber’s diversification.
- The Japan-EBRD Cooperation Fund provides grant backing, aligning with EBRD’s strategy, which totals nearly U.S. $7.3 billion invested in Uzbekistan across 219 projects.
Financing supports production expansion
As reported by European Bank for Reconstruction and Development, the lender is extending a loan of up to U.S. $10 million to Auto Rubber, a domestic producer of automotive rubber sealing systems and other technical rubber components in Uzbekistan.The financing is set to support the company’s development programme, including the expansion and localisation of its production facilities. The project also includes the installation of new equipment to manufacture semi-finished products and a rubber-compound production line, helping position Auto Rubber as a more diversified automotive component manufacturer.
The project is also backed by grant funding from the Japan-EBRD Cooperation Fund.
Governance and private-sector impact
The EBRD says it will also support Auto Rubber in strengthening its corporate governance and advancing gender equality through the adoption of formal internal policies.The transaction fits the bank’s broader strategy in Uzbekistan, where it has invested almost U.S. $7.3 billion through 219 projects to date. Most of that funding has gone toward supporting private entrepreneurship, underscoring the lender’s focus on expanding the country’s privately owned business base.
Our earlier report on Pakistan’s push to expand priority-sector lending described how the government urged banks to increase financing for housing, agriculture, and SMEs, linking improved lending performance to access to incentives. The piece highlighted targets to lift farm and SME credit by June 2027, speed up housing-loan processing, and introduce risk-sharing and regulatory steps to remove structural barriers to wider credit access.
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