Uzbekistan plans to issue sovereign bonds worth $500M
Baku, Azerbaijan, February 4
President of Uzbekistan Shavkat Mirziyoyev approved a series of measures to issue and place sovereign bonds, Trend reports referring to the decree of the head of state.
Uzbekistan plans to issue and place sovereign bonds at a fixed coupon rate of at least $500 million and a circulation period of 5 or more years in 2019.
State securities of Uzbekistan will be issued in the form of international bonds that is equity securities traded outside of Uzbekistan, the initial placement of which is carried out through a group of financial organizations.
The cost of international bonds will be expressed in foreign currency. At the same time, they are not subject to quota requirements and the procedure for admission to the placement and circulation of securities established by law.
The volume and other conditions of issuance, placement and depository accounting of international bonds will be determined by the Ministry of Finance. Moreover, they will also not be the subject to mandatory depository registration in the Central Securities Depository of Uzbekistan.
A consortium of banks headed by The US bank with the largest asset - J.P. Morgan Chase - was selected as the main financial consultant in obtaining a sovereign credit rating and issuing sovereign bonds.
It is planned that the funds received from the placement of bonds will be used to implement various infrastructure projects, as well as, possibly, to cover the budget deficit.