Advising on provisions of an Asian Development Bank loan

Kosta Legal has advised the Asian Development Bank (“ADB”) on providing a multimillion USD loan to a local pharmaceutics manufacturer for expanding its production.

Led by Mr. Nail Hassanov, the lawyers of Kosta Legal have undertaken due diligence on the manufacturing company, reviewed template transactional documents (a draft loan agreement, term sheets, etc.) that are going to be used in the course of the deal and made an initial analysis for structuring security arrangements (pledge of shares, mortgage of production facilities, pledge of movable property, etc. were considered). In structuring the transaction, our lawyers had to consider that the manufacturer had already taken loans from other financial institutions and ABD’s rights as a creditor, including rights over the manufacturer’s property, required some additional legal protection. Negotiations were conducted with manufacturer’s creditors to find ways to secure a favourable deal for ADB.

ADB is a financial institution that fosters economic growth and cooperation in the Asia and Pacific region and is composed of 67 members. ADB has been partnering with Uzbekistan since 1995, having provided approved loans, grants, and technical assistance totalling more than USD 5 billion.