Private equity fund of Uzbekistan to become an investment company

The Presidential Decree "On measures to improve the activities of the Direct Investment Fund of Uzbekistan" was adopted. According to the document, "Management Company of the Direct Investment Fund of Uzbekistan" is transformed into an investment company "Direct Investment Fund of Uzbekistan" in the form of an LLC.

The initial authorized capital of the company will be $100 million. In the future, it will increase and will be gradually brought to $ 1 billion.

Investment Company is tasked with attracting additional investments in the amount of $200 million from partner investors in the period of 2022-2023.

The Minister of Investments and Foreign Trade will be the Chairman of the Supervisory Board of the Investment Company.

The investment company will attract investments by:

- obtaining a loan (loan) and attracting investors' funds to the authorized capital;

- the creation of legal entities or equity participation in their authorized funds (authorized capital), including participation through the acquisition of property;

- establishing cooperation with large institutional and strategic investors, including using the jurisdictions of reputable international financial centers.

The selection and financing of investment projects will be carried out by the company independently, taking into account the criteria and requirements established in the investment policy, as well as based on the financial attractiveness and effectiveness of these projects.

The Decree grants the Investment Company the right to freely sell its property, shares and shares in the authorized capitals of economic entities in an independent manner without applying the legislative procedures established for privatization.

In addition, the document instructs the Investment Company and its operating organizations to reduce the fixed income tax rate by 50% for a period of three years.