Uzbekistan will issue three tranches of sovereign Eurobonds totaling $1.5 billion, according to information available on the Fitch Ratings website. The Eurobonds are equally denominated in three different currencies.

The bonds are equally divided among three currencies: $500 million (7-year maturity), €500 million (4-year maturity), and 6 trillion UZS (3-year maturity).

A portion of the debt securities ($500 million) is denominated in U.S. dollars with a 7-year maturity—until May 25, 2032—with a proposed yield of 6.947%. Another tranche (€500 million) is issued in euros with a 4-year maturity—until February 25, 2029—and a 5.1% yield.

Additionally, the issuance of Eurobonds worth 6 trillion UZS with a 3-year maturity—until February 25, 2028—is planned. The proposed yield for government securities denominated in the national currency is 15.5%.

In mid-February, Behruz Karimov, Deputy Director of the Public Debt Department at the Ministry of Economy and Finance, stated that Uzbekistan is considering issuing sovereign Eurobonds in 2025. However, the volume and timing of the issuance remain uncertain and will be determined based on international market conditions.

Eurobond Market

According to Avesta Investment Group, in 2024, Uzbekistan issued a record volume of Eurobonds worth $4 billion. Of this amount, a little over a third went to the government ($1.5 billion), while the remaining $2.6 billion was distributed among NMMC and banks: Uzpromstroybank, Agrobank, NBU, and Ipoteka-bank.

At a January meeting, the president announced that Almalyk Mining and Metallurgical Complex (AMMC) has been tasked with issuing debut Eurobonds worth $1 billion, while NMMC is expected to issue an additional $500 million. Navoiuran and Uzmetkombinat are also required to raise $300 million each through Eurobonds.

Furthermore, Uzbekistan Airways, Uzbekistan Airports, and the Committee on Roads are expected to obtain international credit ratings.

At a recent press conference, Shukhrat Khudaykulov, Chairman of Uzbekistan Airways, revealed that the company has been tasked with raising $100 million. The airline’s CEO expressed confidence that an agreement for the loan will be signed “in the coming months” with Germany’s Deutsche Bank.

Source: Spot.uz