Uzbekistan set for first eurobond sale

Business Materials 22 February 2018 18:39 (UTC +04:00)
Uzbekistan set for first eurobond sale

Baku, Azerbaijan, Nov. 22

By Nigar Guliyeva- Trend:

Uzbekistan is keen on selling up to $300 million of Eurobonds in 2018 in a bid to open up to foreign investment, Bloomberg reported referring to Finance Minister Djamshid Kuchkarov.

Kuchkarov said that the country signed a memorandum with Citigroup Inc. during a recent visit to New York to develop a road map for obtaining a sovereign credit rating.

There is a “high chance” of a bond sale in either dollars or euros this year, the minister added.

The sale of between $200 million and $300 million would be aimed at creating a benchmark for Uzbek corporate borrowers, Kuchkarov said, adding that the amount is still under discussion and the president will have the final say.

Previously, Kuchkarov stated that Uzbekistan needs a sovereign rating not to get money, but to create a kind of benchmark. The government considers the sovereign rating as one of the ways to diversify sources of raising funds from abroad and turning Uzbek companies into modern corporations.

He noted that after receiving the sovereign credit rating, big companies and banks of Uzbekistan will be able to obtain a similar rating and raise funds in the market.

Obtaining sovereign credit rating of Uzbekistan will promote the growth of foreign direct investments, expansion of cooperation with foreign partners, as well as creation of favorable conditions for banks and enterprises for attraction of loans in the global financial markets at lower interest rates.