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Uzbekistan eyes increasing share of national currency in sovereign bonds

Finance Materials 18 January 2021 18:22
Uzbekistan eyes increasing share of national currency in sovereign bonds

BAKU, Azerbaijan, Jan. 18

By Klavdiya Romakayeva - Trend:

Uzbekistan plans to increase the share of the national currency in sovereign international bonds from 25 percent to 40 percent in two years, Trend reports referring to the Strategy development center in Uzbekistan.

According to the draft presidential decree on the State Program for 2021 published for discussion by the Development Strategy Center it is planned to hire international financial and legal consultants and determine interest rates based on formed orders and place sovereign bonds in national or foreign currency on the international stock exchange.

In addition, it is planned to develop a prospectus and a program for the placement of sovereign bonds.

Earlier it was reported that in December 2020, Uzbekistan sold three-year bonds worth two trillion soums ($191 million) at 14.5 percent per annum. The sale was carried out together with 10-year bonds in the amount of $555 million at 3.7 percent per annum.

According to the Wall Street Journal, the bonds have generated strong demand among international investors, writes.

“The high demand for Uzbek bonds was unusual for a currency that is new and relatively unknown to most international investors. The idea is to help open up a local currency market there, but these deals only happen when the markets are hot enough,” economist at JP Morgan Stefan Weiler said.

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Follow the author on Twitter: @romakayeva

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