Baku, Azerbaijan, May 29
By Fikret Dolukhanov – Trend:
The International Finance Corporation (IFC) placed ‘Samarkand’ bonds nominated in Uzbek soums on the London Stock Exchange on May 18, the press service of the Central Bank of Uzbekistan said in a message.
The total value of placed bonds was 80 billion soums ($10 million), with maturity period of two years and coupon rate of 9.5 percent per year. The deal was the first operation with securities in Uzbek soums in international capital markets.
The bonds sale agreements were concluded with three European asset management companies. Organization of transactions has been undertaken by the ING Capital Markets. Information on terms of the bonds sale has been placed in the Bloomberg system.
The proceeding funds will be used to open a credit line in national currency in Hamkorbank to finance small business projects in Uzbekistan.
The Central Bank of the country noted that appearance of bonds nominated in Uzbek soums on international markets will positively affect the image of the country and stimulate interest of institutional investors towards Uzbekistan.
Expansion of project lending in the national currency in Uzbekistan by IFC will contribute to development of the capital market and reduction of dollarization in the banking sector.
IFC issues bonds nominated in a number of national currencies as part of its program to raise funds for private sector development, which is one of the key steps in development of domestic capital markets.
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