The first Eurobonds of the National Bank of Uzbekistan were placed on the international capital market

JSC “National Bank for for Foreign Economic Affairs of the Republic of Uzbekistan” issued eurobonds worth 300 million dollars on the London Stock Exchange with the maturity period of 5 years, thereby becoming a full-fledged participant of the international capital market.

In the message of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Senate and the Legislative Chamber of the Oliy Majlis on January 24, 2020, the need to take measures to further develop the banking system and capital market, including commercial banks to attract long-term investment in the international capital markets was emphasized.

The international capital market plays an important role in ensuring sustainable economic growth in the country and attracting a wide range of foreign investments. The successful emission of sovereign eurobonds of the Republic of Uzbekistan in 2019, has opened new prospects for local enterprises, including National Bank to international markets.

Today, the NBU is the leading bank in the country in attracting funds from international financial institutions and modernizing key sectors of the economy, financing investment projects of priority and strategic importance.

The debut issue of eurobonds was carried out by the NBU in cooperation with internationally recognized underwriting banks such as Citibank (USA), Natixis (France), SMBC Nikko (Japan) and Gazprombank (Russia).

Within the framework of the roadshow event, which was held on 12-13 October of this year, a global audio conference (Global Investor Call) was held with the participation of more than 70 global international investors from the USA, Europe, Russian Federation and Asian countries. Within the framework of this event, the representatives of the Ministry of Finance and the National Bank provided to foreign investors an information on on current macroeconomic indicators and the process of reforms carried out in the economy and banking sector of the Republic of Uzbekistan, particularly emphasizing the importance of issuing eurobonds by the National Bank. One-to-one meetings were organized with about 12 large international investors where their questions have been completely answered.

On October 14, 2020, according to the recommendations of financial consultants based on the proposals of investors, the first rate of Return of NBU was set at 5 - 5.25% (low-5%) and the book of orders was declared open at 08:15, London time. At 17:00 in London time, the final interest rate and coupon of the international bond issued by the bank were determined. Since there was a high demand from investors and this was twice as high as the volume of emission, the final value of the coupon was 4,85% per annum and decreased by 0,30% from the initial interest rate during trading.

Such a successful placement of eurobonds by the bank is evidence of the positive assessment of the reforms carried out in our country by international investors.

It is planned that the funds attracted by the bank will be directed to financing large investment projects with a strategic nature of the economy and the development of entrepreneurship.

For information: Eurobonds are debt obligations issued in foreign currency for the issuer, placed among foreign investors with the help of an international underwriting syndicate.

Information service of the

Ministry of Finance