Uzbekistan with UNDP support published its first impact report covering issuance of the first-ever public UZS-denominated sovereign bond. Uzbekistan Development Finance Bond Impact & Allocation Report describes how sovereign bond proceeds support sustainable development across a variety of sectors and how projects support the Sustainable Development Goals (SDGs).
In November 2020, the Republic of Uzbekistan issued Eurobonds with a three-year, 14.5 percent UZS 2 trillion tranche, being the equivalent of approximately US$200 million. The proceeds from the transaction were declared to be used for development projects that align with the national SDGs 1, 3, 4, 5, 6, 8 and 9. The projects support the promotion of decent working conditions, economic growth, gender equality and increasing infrastructure sustainability.
According to the Report, major share of proceeds has been allocated to construction and reconstruction of highways and roads (50%), loans to female entrepreneurs (18%), construction and reconstruction of schools (16%).
As a result, 22 new schools were built and 20 schools were reconstructed, three new health facility premises constructed and 13 were reconstructed. To ensure access to clean water and sanitation 254.5 km of drinking water and sewage pipelines were constructed and 303.1 km were reconstructed. These projects now serve over 100,000 people.
The proceeds from the November 2020 bond have enabled the government to support social programmes. 44,247 people received unemployment benefits through the proceeds of the bond. 4,446 women received support through the funding of rehabilitation equipment, 404 women with disabilities received reimbursement for surgery expenses, 531 women were reimbursed the initial payments for purchases of real estate. Supporting around 19,570 women in the form of soft loans helped to create over 19,800 new jobs.
As part of SDG 9: Industry, Innovation and Infrastructure, the construction of major roads has been a focus of infrastructure projects. From the bond proceeds 95.8 km of roads have been constructed, 100 km have been capitally repaired and 3,463.88 km have been maintained. In the future SDG bond issuance will serve as foundation for further issuance of SDG thematic bonds.
“The November 2020 bond issuance is a significant step that contributed to mobilising resources towards bridging gaps to achieve resilience, sustainability and prosperity in Uzbekistan,” noted Jasur Karshibayev, Director of the Public Debt Department, MoF.
“The growth of bond markets provides increasing opportunities to achieve SDGs by financing the implementation of social and green projects. UNDP has increased its support to the government to establish an enabling environment and governance mechanisms, as well as a robust monitoring and evaluation framework for bonds, green bonds, impact bonds and Islamic sukuk, amongst other things,” added Ms. Matilda Dimovska, UNDP Resident Representative in Uzbekistan.
This report highlights Uzbekistan’s commitment to achieving its sustainable development goals and provides a transparent report on the impact of funds deployed.
