Uzbekistan places Eurobonds totaling $1.5 bln in nat'l currency, dollars, euros

TASHKENT. Feb 25 (Interfax) - Uzbekistan has completed placing sovereign Eurobonds on the international market in Uzbek sum, dollars and euros totaling $1.49 billion, the press service of the country's Economy and Finance Ministry said.

Bookbuilding for the bonds was oversubscribed nearly three-fold at $4.2 billion.

The funds from placing the Eurobonds will be allocated to finance the federal budget deficit for 2025, primarily for infrastructure and "green" needs. Part of the funds will be allocated to banks to support the mortgage program.

The sustainable development goals financing program specifically raised 500 million euros, $525 million, with applications totaling 1.6 billion euros. The coupon rate on the green bonds was 5.1% per annum, maturing in four years. The funds will be used to finance implementing water-saving technologies, improving waste management, and other environmental initiatives.

"A report on utilizing the funds from placing green bonds will be prepared and published in accordance with international standards," the press service said.

Uzbekistan also issued seven-year dollar-denominated bonds totaling $500 million at a rate of 6.95% and three-year sum-denominated bonds totaling 6 trillion sum, $463 million, at 15.5%. The funds will be allocated to housing programs, construction and repair of schools, and other social facilities.

Uzbekistan placed sovereign Eurobonds in euros, dollars, and sums last spring totaling $1.5 billion on international markets for the first time.

The government and Uzbek companies and financial institutions overall issued Eurobonds totaling $4.1 billion in 2024. Specifically, the Navoi Mining and Metallurgical Plant (NMMC) placed debut Eurobonds totaling $1 billion, with Uzpromstroibank, Agrobank, Uzbek National Bank, and Ipoteka Bank issuing the remaining amount.

Uzbek President Shavkat Mirziyoyev at a meeting in January said that Almalyk Mining and Metallurgical Plant has been instructed to issue debut Eurobonds totaling $1 billion this year, NMMC to place an additional issue for $500 million, and the Navoiyuran enterprise and Uzmetkombinat to raise $300 million each through Eurobonds.