Uzbekistan successfully places sovereign international bonds worth approximately $1.5 Billion on global financial markets. The Ministry of Economy and Finance has announced that Uzbekistan has successfully placed its next sovereign international bonds on global financial markets, with a total estimated value of approximately $1.5 billion.
On February 18 and 20, orders were accepted in London for the sale of international bonds denominated in US dollars (7-year), euros (4-year), and Uzbek soums (3-year). The total demand for Uzbekistan’s international bonds reached $4.2 billion, specifically:
- $2 billion for 7-year bonds denominated in US dollars
- €1.6 billion for 4-year bonds denominated in euros
- 7.3 trillion UZS for 3-year bonds denominated in Uzbek soums
The interest rates for these bonds were set as follows:
- 7-year bonds worth $500 million – 6.95%
- 4-year bonds worth €500 million – 5.1%
- 3-year bonds worth 6 trillion UZS – 15.5%
The Ministry also provided information on bonds issued in 2024:
- 7-year bonds sold in May 2024 in US dollars had an interest rate of 7.125%
- 3-year bonds issued in euros were placed at 5.375%
- 3-year bonds denominated in Uzbek soums had an interest rate of 16.625%
Additionally, during January and February 2025, 3-year government treasury bonds placed in the domestic financial market had interest rates ranging between 15.6% and 16.1%.
The funds raised from these bond placements will be allocated to cover the state budget deficit and to provide financial resources to banks for mortgage programs.
The euro-denominated bonds were issued with a “Green” designation, and the proceeds will be used to finance projects related to water-saving technologies, sanitation improvements, and other sustainability initiatives. The Ministry emphasized that the funds from these “Green” bonds will be monitored and reported in accordance with international standards.
Between 2021 and 2024, Uzbekistan issued $1.2 billion worth of international bonds with the “Sustainable Development Goals” and “Green” designations. Reports on these bonds were published in compliance with international requirements. The project selection process involved the United Nations Development Programme (UNDP), and Sustainalytics conducted an independent evaluation.
The funds raised from dollar- and soum-denominated bonds will be directed towards housing construction programs, as well as the construction and renovation of schools and preschool educational institutions.
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