The Uzbek Ministry of Finance is preparing to place a dual-tranche sovereign eurobonds denominated both in U.S. dollars and Uzbek soums total worth of US$ 870 million on the London Stock Exchange, the Deputy Finance Minister Odilbek Isakov said today.
The U.S. dollar worth of Eurobonds will have 10-year maturity, while the Uzbek soum-denominated bonds will mature from 3 to 5 years, he added.
“We do not know yet for sure the value of the tranches, last year we issued Uzbek soum-denominated tranche worth 2 trillion soums. If the demand is good, we will increase the tranche volume in soums and decrease it in dollars. But the total amount of tranches will top US$ 870 million, ”said the Deputy Minister of Finance.
Odilbek Isakov recalled that under the State budget for 2021 Law, the ceiling for newly signed loan agreements was set within at US$ 5 billion, and for attracting debt in the domestic market - US$ 500 million. He pointed out that the Eurobonds will be within this limit.
“US$ 3.3 billion [out of US$ 5 billion] are being drawn for investment projects, while US$ 1.7 billion are to be drawn to [cover] the budget deficit. Out of 1.7 billion, we will attract US$ 870 million as Eurobonds, and the remaining US$ 830 million from international financial institutions to support the budget,” he said.
The Deputy Minister stressed that proceeds from the issuance of international bonds in national currency will be used to finance the Sustainable Development Goals (SDGs) as part of the SDG program for Uzbekistan, namely the construction of schools, hospitals, water supply, promotion of gender equality policies and others.
The ministry underscored that one-on-one meetings will be held with investors from USA, UK, Germany, France, Denmark and Switzerland as part of the July 8-9 online "road show" ahead of the Eurobond placement.