Uzbekistan Plans to Issue $1.5 Billion in Sovereign Eurobonds, Says Fitch
Uzbekistan to Issue $1.5 Billion in Sovereign Eurobonds
Uzbekistan is set to issue three sovereign Eurobond offerings totaling $1.5 billion, as confirmed by Fitch Ratings. The bonds will be divided equally across three different currencies: $500 million in U.S. dollars with a seven-year maturity, €500 million in euros with a four-year maturity, and 6 trillion UZS with a three-year maturity.
The details of the issuance include the $500 million dollar-denominated bonds maturing on May 25, 2032, with a proposed yield of 6.947%. The €500 million euro-denominated bonds are scheduled to mature on February 25, 2029, with a yield of 5.1%. Additionally, Eurobonds worth 6 trillion UZS will have a three-year maturity until February 25, 2028, with a proposed yield of 15.5%.
Behruz Karimov, deputy director of the Department of Public Debt at the Ministry of Economy and Finance, had previously mentioned that Uzbekistan was looking into issuing sovereign Eurobonds in 2025. The exact volume and maturity period are yet to be determined and will depend on international market conditions.
In 2024, Uzbekistan issued a record $4 billion in Eurobonds, with $1.5 billion raised by the government and the remaining $2.6 billion allocated to Navoi Mining and Metallurgical Company (NMMC) and various banks.
Recently, during a meeting in January, the President announced plans for further Eurobond issuances. Almalyk Mining and Metallurgical Complex (AMMC) and NMMC are expected to issue Eurobonds worth $1 billion and $500 million, respectively. Additionally, Navoiuran and Uzmetkombinat are set to raise $300 million each through Eurobond placements.
Furthermore, Uzbekistan Airways, Uzbekistan Airports, and the Committee for Highways are preparing to obtain international credit ratings. Shukhrat Khudaykulov, Chairman of Uzbekistan Airways, revealed plans to raise $100 million, expressing confidence in securing financing from Germany’s Deutsche Bank in the coming months.
