Uzbekistan has earlier announced the opening of an orderbook for an $870-million dual-tranche eurobond denominated in dollars and local currency. Deputy Head of the department for operations with international financial markets of the Finance Ministry Aziz Sodikov has briefed about the government plans, towards which spheres the revenue received from eurobonds would be used.
The second tranche of international bonds in the amount of $635 million and a benchmark yield at 3.9% for a period of 10 years, as well as UZS 2.5 trillion soms with a benchmark yield of 14% with the maturity ending in 2024 was placed on the London Stock Exchange. The yields for 10-year US Treasury bonds since November 2020 have increased from 0.85% to 1.35%. The spread of 10-year international bonds of of Uzbekistan compared to US Treasury bonds decreased from 2.85% to 2.55%.
The Global Investor Call has already been held with the participation of international investors from more than 50 countries such as the United Kingdom, Germany, Luxembourg, Switzerland, Denmark, Singapore and the United Arab Emirates. Tete-a-tete meetings with representatives of 27 international investors have already been held.
International bonds in national currency were issued within the framework of the SDG bonds program of the Republic of Uzbekistan, thus these funds would be used to finance the SDGs.
The SDG bond program mainly aims at achieving the Sustainable Development Goals by 2030, including assessment, increased reporting and the impact of development when using borrowed funds. (Uzreport/Business World Magazine)