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International investors consider issuing sovereign Eurobonds in Uzbek soums

Finance Materials 20 November 2020 11:31
International investors consider issuing sovereign Eurobonds in Uzbek soums

BAKU, Azerbaijan, Nov. 20

By Klavdiya Romakayeva - Trend:

International investors have expressed interest in issuing sovereign Eurobonds bonds, denominated not only in dollars but also in Uzbek soums, Trend reports with reference to the Ministry of Finance of Uzbekistan.

A "Global Investor Call" as part of a roadshow, as well as a number of one-to-one virtual meetings with major international investors, was held by the Ministry of Finance On November 17-18. The events were attended by about 90 international investors from the US, Great Britain, Denmark, Australia, and the United Arab Emirates.

International investors positively assessed Uzbekistan’s macroeconomic prospects and the ongoing systemic reforms and expressed interest in issuing sovereign Eurobonds bonds, denominated not only in dollars but also in Uzbek soums.

A sovereign bond is a debt security issued by a national government within a given country and denominated in a foreign currency.

The issue of international bonds in national currency will make it possible to reduce currency risks, as well as create the basis for attracting international investors to the domestic financial market, including the market for government treasury bonds.

Financial consultants (Citi, JP Morgan, Societe Generale, VTB Capital, and Gazprombank) offered Uzbekistan to issue sovereign bonds in the amount of $750 million in two tranches, namely for 10 years in foreign currency and three year - in the national. The original interest rates were 4.25 percent and 15.25 percent, respectively.

It was expected that the process of setting coupon rates on both tranches of Uzbekistan's sovereign Eurobonds would be completed on November 19, based on the volume of applications per day and offers from investors, as well as the situation in the financial markets.

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Follow the author on Twitter: @romakayeva

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