The Republic of Uzbekistan Has Issued Its Next Sovereign International Bonds
Economy
The Republic of Uzbekistan has placed its next sovereign international bonds on global financial markets, with a total equivalent value of approximately $1.5 billion. This was reported by the Ministry of Economy and Finance.
On February 18 and 20 of this year, orders for the placement of sovereign international bonds were announced in London:
7-year bonds in U.S. dollars,
4-year bonds in euros,
3-year bonds in Uzbek sums.
Total orders for Uzbekistan’s international bonds amounted to $4.2 billion, including:
$2 billion for 7-year bonds in U.S. dollars;
€1.6 billion for 4-year bonds in euros;
7.3 trillion sums for 3-year bonds in Uzbek sums.
The following interest rates were recorded for Uzbekistan’s international bonds:
7-year bonds worth $500 million – 6.95% (for comparison, similar bonds issued in May 2024 had a rate of 7.125%);
4-year bonds worth €500 million ($525 million) – 5.1% (in 2024, 3-year bonds were placed at a 5.375% rate);
3-year bonds worth 6 trillion sums ($463 million) – 15.5% (in 2024, the rate for similar bonds was 16.625%).
For reference: In January-February of this year, the interest rate on 3-year government treasury bonds in the domestic financial market ranged from 15.6% to 16.1%.
The proceeds from the placement of international bonds will be used to finance the budget deficit of the Republic of Uzbekistan for 2025, as approved by Law No. O‘RQ-1011 dated December 24, 2024. Additionally, funds will be allocated to commercial banks to support the mortgage program.
Specifically:
The euro-denominated sovereign international bonds were issued with a “Green” status as part of Uzbekistan’s Sustainable Development Goals financing program. The funds raised from these "Green" bonds will be directed toward implementing water-saving technologies, organizing sanitation projects, and financing similar environmental initiatives.
The use of proceeds from "Green" bonds will be reported in accordance with international standards and published regularly.
Between 2021 and 2024, Uzbekistan issued sovereign international bonds worth $1.2 billion with “Sustainable Development Goals” and “Green” statuses. Reports on the expenditure of these funds have been published in compliance with international standards.
The project selection process involved the United Nations Development Programme (UNDP), and an independent assessment was provided by “Sustainalytics.”
The proceeds from the placement of sovereign international bonds in U.S. dollars and Uzbek sums will be allocated to finance the housing program for the population, as well as the construction, renovation, and reconstruction of public schools, preschools, and other social sector facilities.
7-year bonds in U.S. dollars,
4-year bonds in euros,
3-year bonds in Uzbek sums.
Total orders for Uzbekistan’s international bonds amounted to $4.2 billion, including:
$2 billion for 7-year bonds in U.S. dollars;
€1.6 billion for 4-year bonds in euros;
7.3 trillion sums for 3-year bonds in Uzbek sums.
The following interest rates were recorded for Uzbekistan’s international bonds:
7-year bonds worth $500 million – 6.95% (for comparison, similar bonds issued in May 2024 had a rate of 7.125%);
4-year bonds worth €500 million ($525 million) – 5.1% (in 2024, 3-year bonds were placed at a 5.375% rate);
3-year bonds worth 6 trillion sums ($463 million) – 15.5% (in 2024, the rate for similar bonds was 16.625%).
For reference: In January-February of this year, the interest rate on 3-year government treasury bonds in the domestic financial market ranged from 15.6% to 16.1%.
The proceeds from the placement of international bonds will be used to finance the budget deficit of the Republic of Uzbekistan for 2025, as approved by Law No. O‘RQ-1011 dated December 24, 2024. Additionally, funds will be allocated to commercial banks to support the mortgage program.
Specifically:
The euro-denominated sovereign international bonds were issued with a “Green” status as part of Uzbekistan’s Sustainable Development Goals financing program. The funds raised from these "Green" bonds will be directed toward implementing water-saving technologies, organizing sanitation projects, and financing similar environmental initiatives.
The use of proceeds from "Green" bonds will be reported in accordance with international standards and published regularly.
Between 2021 and 2024, Uzbekistan issued sovereign international bonds worth $1.2 billion with “Sustainable Development Goals” and “Green” statuses. Reports on the expenditure of these funds have been published in compliance with international standards.
The project selection process involved the United Nations Development Programme (UNDP), and an independent assessment was provided by “Sustainalytics.”
The proceeds from the placement of sovereign international bonds in U.S. dollars and Uzbek sums will be allocated to finance the housing program for the population, as well as the construction, renovation, and reconstruction of public schools, preschools, and other social sector facilities.
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