TASHKENT, Uzbekistan, July 9. JSC National Bank for Foreign Economic Activity of Uzbekistan (NBU) has successfully completed a landmark eurobond issuance on international capital markets, raising a total of $418 million, Trend reports.
The transaction was structured into two tranches: a $300 million five-year bond with a coupon rate of 7.2 percent and a 1.5 trillion soum ($134 million) three-year bond offering a yield of 17.95 percent.
The issuance attracted participation from leading global investment banks, including J.P. Morgan, Citi, Societe Generale, Natixis, Standard Chartered, Mashreqbank, Abu Dhabi Commercial Bank, Oman Investment Bank, and Commerzbank. Legal advisory was provided by Dentons, with Deloitte & Touche overseeing the audit process.
Investor demand was robust, with total bids exceeding $1.3 billion—comprising $1.04 billion in foreign currency and 3.1 trillion soums ($277 million) in local currency. This strong interest enabled NBU to significantly lower borrowing costs: dollar-denominated bonds saw a yield reduction of 130 basis points, from 8.5 percent to 7.2 percent, while sum-denominated bonds dropped by 192.5 basis points, from 19.875 percent to 17.95 percent.
In line with a presidential directive, NBU aims to raise $1.2 billion in external financing by 2025. The funds will support strategic investment and infrastructure projects across key sectors, including housing, tourism, transport, healthcare, and energy, as well as bolster small and medium-sized enterprises and community development initiatives.
In the interim, NBU has established itself as the pioneering commercial banking entity in Uzbekistan to execute a public issuance of bonds denominated in the national currency within the realm of international capital markets. Capital generated in soums will be earmarked for strategic regional development initiatives, encompassing residential infrastructure projects, youth empowerment programs, and the augmentation of the service sector.
