Uzbekistan places $1.5 billion worth of sovereign eurobonds

Uzbekistan successfully raised $1.5 billion through a new issue of sovereign Eurobonds on the London Stock Exchange on February 18 and 20, the press service of the Ministry of Economy and Finance reports.

Just like last year, the country placed bonds in three currencies:

• 7-year Eurobonds in US dollars,
• 4-year euro-denominated bondsprojects aimed at financing the Sustainable Development Goals (SDGs),
• 3-year bonds in soums.

During the placement, investors submitted bids for $4.2 billion, of which:

• $2 billion-for dollar-denominated securities,
• €1.6 billion-for Eurobonds,
• 7.3 trillion soums — for bonds in the national currency.

However, demand was lower than last year, when the volume of applications reached $5.5 billion.

Coupon rates

• 7-year bonds on $500 million — 6,95%,
• 4-year bonds on €500 million — 5,1%,
• 3-year bonds issued on 6 trillion soums — 15,5%.

Where will the funds raised be sent?

Funds in euro They will be invested in "green" projects: the introduction of water-saving technologies and the development of sanitary treatment systems. Since 2021, Uzbekistan has already placed $1.2 billion worth of sovereign bonds under the SDGs and green finance. The selection of projects is supported by the United Nations Development Programme (UNDP) and international experts.

Funds in in dollars and soums It will be used to cover the budget deficit, develop housing programs and mortgages, as well as for the construction, repair and reconstruction of schools, kindergartens and other social facilities.

Record Eurobond issue

According to Avesta Investment Group, Uzbekistan issued a record amount of Eurobonds in 2024 $4 billion. Of these, $1.5 billion I had to work for the government, and $2.6 billion They were distributed among the Navoi Mining and Metallurgical Combine, as well as the banks Uzpromstroybank, Agrobank, NBU and Ipoteka-Bank.

In January, the President instructed Almalyk MMC place eurobonds for the first time on $1 billion, and NMMC - issue additional reports $500 million. Navoiyuran and Uzmetkombinat also plan to attract investment in the following areas: $300 million at the expense of eurobonds.

What are Eurobonds?

Eurobonds are long-term securities issued in a foreign currency. They are issued by governments, international organizations and large corporations to raise funds for a period of 1 to 40 years. Despite the name, today Eurobonds are issued in different countries and currencies, and after a certain time the issuer undertakes to buy them back.