Uzbekistan places first govt Eurobond, upcoming corporate placements

RUSSIA / FSU POLITICS - In Brief 20 Feb 2019 by Alex Teddy
Uzbekistan last week issued its first Government Eurobond, at USD 1 bn, 8.5 times oversubscribed with a yield at 5.375%. This is a major success. There are 5 year and 10 year notes. Uzbek companies need finance for foreign trade and to invest in domestic production and services.The yield on 10 year notes is almost 200 basis points lower than what Tajikistan had to pay to borrow USD 500 million for 10 years when it first issued Eurobonds in 2017.President Mirziyoyev has ruled his country since September 2017 when Islam Karimov died. Mirziyoyev has pursued a much more sensible currency policy. It now has much greater access to global financial markets.FDI was 444% in 2018 compared to 2017.The US Federal Reserve has postponed its baseline interest increase. This has helped Uzbekistan secure its low yield. Uzbekistan is borrowing at the same rate as Georgia which is a favorite of the West. Uzbekistan's rate is only a little above Kazakhstan's. Uzbekistan's credit rating is (BB-). Uzbek Finance Minister said more Eurobond issues will come probably for two banks. This was confirmed in conversation with a leading German bank in Tashkent, which is participating in the placement of these corporate bonds.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.