Uzbekistan to place $600mn of eurobonds to support business

By Muzaffar Ismailov in Tashkent November 16, 2023

Uzbekistan government-owned structures for business support are to issue eurobonds worth $600mn, according to a decree inked by the country’s president on November 15.

According to available information, the Business Development Bank (BDB) and the Entrepreneurship Development Company (EDC) will each offer $300mn of eurobonds on international markets.

The BDB is also to raise $800mn of credit resources from international institutional investors to support small businesses. If the move is realised, the loans balance allocated to small enterprises would increase by 1.7 times. The share of small businesses in the loan portfolio would be expected to grow from the current 28% to 43%.

The EDC is expected to provide equity financing to 150 medium-sized enterprises. The plans also show that another 300 projects are to be sold to businesses under the "service mortgage" programme. The total volume of financial services for SMEs is seen as growing by 75%, from $650mn to $1.13bn.

Last week, Uzbek President Shavkat Mirziyoyev gave instructions for the transformation of the State Fund for Business Support into the EDC. It will be provided with $115mn from the budget and is also to raise $100mn from international organisations.

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