Uzbekistan will issue three tranches of sovereign eurobonds totaling $1.5 billion, according to Fitch.

Uzbekistan will issue three tranches of sovereign eurobonds totaling $1.5 billion, according to information from the Fitch Ratings website. The eurobonds are equally denominated in three different currencies.

One portion of the debt securities ($500 million) is denominated in dollars with a maturity period of 7 years—until May 25, 2032. The proposed yield on these government securities is 6.947%. Another portion of the eurobonds (€500 million) will be issued in euros with a maturity of 4 years—until February 25, 2029—and a yield of 5.1%.

Additionally, there are plans to raise eurobonds worth 6 trillion sums with a maturity period of 3 years—until February 25, 2028. The yield on government securities denominated in the national currency is proposed at 15.5%.

In mid-February, Behruz Karimov, Deputy Director of the State Debt Department of the Ministry of Economic Development and Finance, stated that Uzbekistan is considering the possibility of issuing sovereign eurobonds in 2025. However, the volume and timing of the issuance are still unknown and will be determined based on the conditions in the international market.

Eurobond Market

According to data from the investment company Avesta Investment Group, Uzbekistan issued a record volume of eurobonds worth $4 billion in 2024. Of this amount, just over a third was allocated to the government ($1.5 billion), while the remaining $2.6 billion was distributed among NGMK and banks: "Uzpromstroybank," "Agrobank," the National Bank of Uzbekistan, and "Hypotheca Bank."

At a meeting in January, the president announced that this year AGMK has been tasked with placing debut eurobonds worth $1 billion, while NGMK will issue an additional $500 million. "Navoiuran" and Uzmetkombinat are also expected to attract $300 million each through eurobonds.

Furthermore, international credit ratings for Uzbekistan Airways, Uzbekistan Airports, and the Road Committee are anticipated.

At a recent press conference, the chairman of Uzbekistan Airways, Shukhrat Khudaikulov, discussed the directive to raise $100 million. The head of the state company expressed confidence in signing an agreement with the German Deutsche Bank to secure borrowed funds "in the coming months."

Earlier, Spot reported that the Ministry of Economic Development and Finance denied rumors about planned increases in pensions and salaries.