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Uzbekneftegaz plans to raise $1 B with Eurobonds placement

Finance Materials 13 April 2019 13:17 (UTC +04:00)

Baku, Azerbaijan, April 13

By Fakhri Vakilov – Trend:

Uzbekneftegaz JSC, the monopolistic operator of the oil and gas complex of Uzbekistan, plans to attract $1 billion as a result of the placement of Eurobonds, Trend reports with reference to Uzbekenftegaz.

To raise funds in the debt markets, the company intends to receive an international credit rating.

"We are concentrating at the first stage on obtaining an international rating, but ultimately see how we are entering to the market," the head of Uzbekneftegaz Bahodirjon Sidikov said.

The company intends to allocate funds from the placement of a bond loan, in particular, to the development of geological exploration and oil and gas production.

Earlier it was reported that the issue of Eurobonds will be a debut for the company.

Gazprombank has been appointed one of two global coordinators and so-bookrunners of the issuance.

In 2018, Uzbekneftegaz produced 61 billion cubic meters of gas (an increase of 9.3 percent by 2017) and 3 million tons of oil and condensate.

In February 2019, Uzbekistan debuted on the Eurobond market by placing two tranches of sovereign debt securities totaling $1 billion.

The volume of each tranche was $500 million. The yield on the 5-year tranche was 4.75 percent, the 10-year tranche - 5.375 percent.

Follow author on Twitter:@vakilovfaxri

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