On May 21, 2024, the Republic of Uzbekistan issued sovereign international bonds worth approximately $1.5 billion for the first time in three currencies: US dollars, euros, and UZS.

On May 17, a Global Investor Call was held via video conference with 76 investors from countries such as the USA, the UK, Germany, Denmark, and the UAE. Subsequently, on May 20-21, one-on-one meetings were conducted with 40 major investors. During these meetings, detailed information was provided about the structural reforms and macroeconomic situation in Uzbekistan under the "Uzbekistan-2030" strategy led by the President of the Republic of Uzbekistan.

International investors responded positively to the country’s efforts in maintaining macroeconomic stability, accelerating energy tariff reforms, privatization, and other structural changes, despite ongoing global challenges.

Following these discussions, it was announced on May 21 that Uzbekistan would place sovereign international bonds in three currencies, including 7-year bonds in US dollars, 3-year bonds in euros aimed at financing Sustainable Development Goals (SDGs), and 3-year bonds in UZS. Orders for these bonds totaled $5.5 billion, broken down as follows:

• $3 billion for 7-year USD bonds
• €2 billion for 3-year EUR bonds
• UZS 4 trillion for 3-year UZS bonds

The bonds were issued with the following coupon rates:

• 7-year USD bonds: $600 million at 6.9%
• 3-year EUR bonds: €600 million at 5.375%
• 3-year UZS bonds: UZS 3 trillion at 16.625%

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

Notably, the euro-denominated bonds were issued under Uzbekistan's SDG bonds program, which is designed to finance the country’s Sustainable Development Goals. This program includes the preparation and publication of reports on "Fund Allocation" and the "Impact of Projects on Uzbekistan's Sustainable Development Goals."

Proceeds from these bonds will be used to cover the state budget deficit and to fund sustainable development initiatives.

Source: imv.uz