Uzbekistan's State Assets Management Agency (UzSAMA) has concluded the sale of a 100% stake in Poytakht Bank to Bond Investments Limited, an investment entity based in the United Arab Emirates, for $10mn.

The sale agreement follows a thorough evaluation process conducted by UzSAMA with the assistance of international consultant Deloitte, officials said. 

The sale comes after a previous agreement with Expobank of the Russian Federation was terminated due to geopolitical constraints. 

The offer from Bond Investments Limited exceeded two competing bids and the valuation determined by international appraiser KPMG.

Bond Investments Limited, a subsidiary of the Das Holding group, was selected due to its strong financial proposal and strategic vision for Poytakht Bank. 

The UAE-based investor, billed as recognised for its rapid growth and diverse portfolio across the Middle East, aims to leverage its banking experience, including the establishment of Islamic and digital banks, within Uzbekistan.

"We are committed to enhancing Poytakht Bank's infrastructure with cutting-edge mobile and digital financial technologies," stated a spokesperson from Bond Investments Limited.

The investor has already developed a plan to modernise operations and expand services in Uzbekistan's banking sector.

The transaction is pending approval from the Central Bank of Uzbekistan to ensure compliance with local regulatory frameworks. Bond Investments Limited and its affiliates have been confirmed as clear of any sanctions from major international financial bodies.

Uzbekistan began privatising state-owned enterprises in 2019, driven by decrees aimed at transitioning to a market-driven economy. Since 2016, President Shavkat Mirziyoyev has worked to open Uzbekistan's tightly regulated economy to global investors under the vision of "New Uzbekistan."

In 2020, the government committed to privatising 620 state-owned enterprises, including Uzbekneftegaz and the Navoi Mining and Metallurgical Company, which operates the Muruntau gold mine.

By 2021, UzSAMA made strides in privatisation, including fully privatising the cotton sector and advancing towards privatizing wheat production. The government's commitment was highlighted by the Turkish CCI Group's acquisition of a Coca-Cola bottling plant and over $250mn in deals struck at a September 2021 economic forum.

Furthermore, in December 2022, Uzbekistan completed the privatisation of Ipoteka Bank, with OTP Bank acquiring 75% of its shares.