The Ministry of Justice of the Republic of Uzbekistan has registered the order of the Director of the National Agency for Prospective Projects “On Amendments and Additions to the Rules for the Issuance of Securities and State Registration of Issues of Emission Securities” (registration number №2000-11 dated March 11, 2025).

These amendments aim to develop the national capital market and create favorable conditions for issuers and investors.

Key Innovation: Serial Bond Issuance Mechanism

One of the most significant innovations is the introduction of a mechanism for issuing serial bonds within a bond program. These changes allow issuers to significantly simplify and accelerate the process of raising financial resources.

What Changes for Issuers?

The serial bond mechanism enables issuers to issue multiple bond tranches under a single registered bond program. The main benefits of the new mechanism include:

• Flexible financing – Issuers can gradually issue bonds based on market conditions and capital needs.
• Cost optimization – Bonds in different series can have different maturities and interest rates, reducing borrowing costs.
• Broader investor base – Different bond parameters attract a wider range of investors.
• Refinancing opportunities – Issuers can issue new bond series to refinance previously issued obligations.

Additionally, the amendments allow mortgage refinancing organizations to issue corporate bonds exceeding their equity capital and expand the list of securities collateral types.

Global Experience and Future Prospects

The serial bond issuance mechanism is widely used in countries with developed capital markets, including Malaysia, Pakistan, Russia, and Kazakhstan. Implementing this instrument in Uzbekistan will enhance the competitiveness of the national market, provide issuers with more efficient financing options, and create new investment opportunities.

These regulatory changes mark an important step toward modernizing Uzbekistan’s financial sector and enhancing its investment attractiveness. The newly introduced mechanisms are expected to have a positive impact on the development of the capital market and attract new investments into Uzbekistan’s economy.

Source: National Agency for Prospective Projects of Uzbekistan