On April 27, UzAuto Motors issued its first international Eurobonds of the RegS /144A format in the worth of $ 300 million for a period of 5 years on the London Stock Exchange, the press service of the Ministry of Finance of Uzbekistan said.
As previously reported, from 22 to 26 April, a road show was held, during which representatives of the Ministry of Finance and UzAuto Motors made presentations to foreign investors and took their questions.
As part of the roadshow, a teleconference was held with the participation of more than 50 global institutional investors from the United States, Europe, Russia and Asia, as well as one-to-one meetings with 28 major investors.
On the recommendation of financial advisers-underwriters based on proposals from investors, the initial interest rate of UzAuto Motors was set at 5.375%, and the order book was announced open at 8:15 am London time.
Orders stood worth US$ 1.1 billion as of 1:00 pm London time. Based on the volume of generated orders and the analysis of the financial consultant, the interest rate was reduced to 5.00-5.125%. After the opening of the U.S. markets, order volume continued to rise, peaking at US$ 1.4 billion, opening the door for further interest rate reductions. At 15:00 London time, the final interest rate and coupon were cut by about 0.15% to 4.85%.
International bonds were distributed among nearly 130 investors from the UK (37%), USA (14%), Germany (8%) and several other European (35%) and Asian (6%) countries.
While, the majority of these investors are asset managers and funds (67%), banks (23%) and insurance and pension funds (10%).
"The successful placement of the first Eurobonds by UzAuto Motors testifies to a positive assessment by investors of the current reforms in Uzbekistan, including the program for transformation of state-owned enterprises," the statement said.