Uzbekistan, for the first time, has placed Sovereign International Bonds in 3 currencies: USD, EUR and UZS (Uzbek Soums), worth $1.5 Billion.

The sovereign international bonds of the Republic of Uzbekistan with a total value of about US $ 1.5 billion were placed on the world financial markets for the first time in 3 currencies on May 21, 2024.

On may 17 of this year, there were meetings with 76 investors from countries such as the United States, the United Kingdom, Germany, Denmark and the United Arab Emirates in a one-on-one format with videoconference (Global Investor Call) and on may 20-21 with 40 major investors.

At the meetings, international investors were given detailed information on the structural reforms and macroeconomic situation under the strategy of Uzbekistan – 2030 under the leadership of the president of the Republic of Uzbekistan.

Despite the complex situation that continues in the world, macroeconomic stability is maintained in Uzbekistan by international investors, energy tariffs, privatization and other structural reforms have accelerated in practical terms. 

After the meetings, on May 21, it was announced that orders for the placement of sovereign international bonds in 3 currencies, including:
– 7 year in US dollars, 
– 3 year in EUR to finance the “Sustainable Development Goals”, and 
– 3 year in the national currency of Uzbekistan (UZS). 

During the day, orders for the purchase of sovereign international bonds totalled $ 5.5 billion, including:

7-yr USD bonds- USD 3 billion;
3-yr euro bonds – EUR 2 billion;
3-yr UZS bonds — UZS 4 trillion. 

As a result of the received orders, the following were achieved:

• 7-yr USD bonds $ 600 million with 6.9% coupon rate; 
• 3-yr EUR bonds € 600 million with 5,375% coupon rate ;
• 3-yr UZS bonds UZS 3 trillion with 16,625% coupon rate. 

For reference: the interest rate on 3-year government securities issued in domestic financial markets is 17.9%.

It should be noted that sovereign international bonds in the euro were issued as part of the Republic of Uzbekistan’s #SDG bonds program, developed to fund Uzbekistan’s Sustainable Development Goals.

This program also provides for the preparation and publication of reports on the “distribution of funds” and “impact of projects on the Sustainable Development Goals of Uzbekistan”. 

Proceeds from these international bonds are directed to cover the state budget deficit and to fund Sustainable Development Goals.

Source: Ministry of Economy and finance of the Republic of Uzbekistan