Uzbekistan to issue $1.5 billion in sovereign Eurobonds – Fitch

As part of the issuance, the $500 million dollar-denominated bonds will mature on May 25, 2032, with a proposed yield of 6.947%, while the €500 million euro-denominated bonds will mature on February 25, 2029, with a yield of 5.1%. Additionally, Eurobonds worth 6 trillion UZS are planned, with a three-year maturity until February 25, 2028, and a proposed yield of 15.5%.

In mid-February, Behruz Karimov, deputy director of the Department of Public Debt at the Ministry of Economy and Finance, stated that Uzbekistan was considering issuing sovereign Eurobonds in 2025. However, it was noted that the exact volume and maturity period have yet to be determined and will depend on international market conditions.

According to investment firm Avesta Investment Group, Uzbekistan issued a record $4 billion in Eurobonds in 2024. Of this amount, $1.5 billion was raised by the government, while the remaining $2.6 billion was allocated to Navoi Mining and Metallurgical Company (NMMC) and several banks, including JSCB Uzbek Industrial and Construction Bank, Agrobank, NBU, and Ipoteka Bank.

During a January meeting, the President announced further Eurobond issuances. Almalyk Mining and Metallurgical Complex (AMMC) has been instructed to issue its debut Eurobonds worth $1 billion, while NMMC will conduct an additional $500 million issuance. Navoiuran and Uzmetkombinat are also expected to raise $300 million each through Eurobond placements.

Furthermore, Uzbekistan Airways, Uzbekistan Airports, and the Committee for Highways are set to obtain international credit ratings. 

At a recent press conference, Shukhrat Khudaykulov, Chairman of Uzbekistan Airways, stated that the airline plans to raise $100 million. He expressed confidence that an agreement with Germany’s Deutsche Bank to secure financing will be signed in the coming months.