Uzbekistan goes to debt markets with triple-currency trade

By Mokhi Sultanova in Tashkent May 22, 2024

Uzbekistan on May 21 issued its first euro-denominated bond as part of its first “triple trancher”—debt issued in three different currencies—aimed at international investors. The issuance was made up of paper worth approximately $1.5bn, the Ministry of Economy and Finance announced.

GlobalCapital reported buyers greeted the deal with enthusiasm, with strong European participation suggesting investors were shrugging off the Russia war.

Orders for the bonds, which included a 7-year tranche in USD and a 3-year tranche in euros aimed at financing sustainable development goals (SDGs), were announced on May 21. Total demand reached $5.5bn, comprising:

  • $3bn in 7-year US dollar bonds
  • €2bn in 3-year euro bonds
  • Uzbekistani som (UZS) 4 trillion ($315.3mn) in 3-year bonds

The final terms of the bond issuance were:

  • A coupon rate of 6.9% for $600mn in 7-year US dollar bonds
  • 5.375% for €600mn in 3-year euro-denominated bonds
  • 16.625% for UZS3 trillion in 3-year bonds

In October 2023, Uzbekistan issued its first green bonds, raising $349mn.

In preparation for the bond issuance, a video conference call with 76 investors from countries including the US, the UK, Germany, Denmark and the UAE was held on May 17. There were then one-on-one meetings with 40 major investors over May 20-21. The sessions provided insights into Uzbekistan’s structural reforms and macroeconomic outlook under the "Uzbekistan-2030" strategy led by President Shavkat Mirziyoyev.

Officials said international investors responded positively to updates on Uzbekistan's macroeconomic stability and the acceleration of energy tariff adjustments, privatsation efforts and other structural reforms, despite global economic challenges.

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