Why is this important
The transaction shows the growth of corporate financial relationships in large businesses, can increase risks associated with guarantees, especially with large terms and amounts. This also affects the asset management strategy and the financial stability of insurance and banking companies.
What happened
- High Rise Advisors (a subsidiary of LLC established on February 7, 2025) received an $8.33 million loan from Trastbank for 84 months at 8% per annum to purchase the remaining 41.67% stake in the Tashkent Palace New (Lotte hotel) charter capital.
- The insurance company Alfa Invest provided a guarantee for High Rise Advisors’ obligations on a $11 million loan to Octobank.
- On September 15, Alfa Invest shareholders decided to increase the authorized capital by 3.2 billion soums by reinvesting the undistributed portion of profits from previous years.
Context
Such a practice — guaranteeing large corporate obligations — implies additional obligations for the guarantor if the debtor is unable to fulfill the obligations. Increasing the authorized capital can be aimed at strengthening financial indicators and providing reserves to cover potential risks.
Considering large loans and relationships between companies, transaction transparency and risk assessment are important for investors and regulators.
