Underwriting

The National Bank as an investment bank offers its clients to use the service of securities issue underwriting. Securities distribution among investors on the market is an effective way to attract financial resources for enterprises of the republic. Financing the republican enterprises' needs by issuing corporate bonds has become very popular in recent years.

Corporate bonds are the securities certifying the obligation of the issuer to pay the investor the nominal amount on the day of bonds redemption, and to pay interest to the investor.

Increasing interest of enterprises in corporate bonds is due to advantages of this instrument over traditional borrowing instruments.

Being able to attract borrowed resources on the market and having an image of an impeccable borrower is a part of the bank's marketing strategy focused, inter alia, on the prospects of promotion of investment in international markets.

No creditors' control over the targeted use of borrowed funds.

Diversification of debt structure and reduction of dependence on commercial banks.

Opportunities to control the extent of debt by the purchase and sale of its bonds on the secondary market and others.

This tool also offers great opportunities for investors:

• The bonds interest rate exceeds the deposit rate of commercial banks;

• Bonds interest income is subject to 15% preferential income tax rate.

During the underwriting, the National Bank provides consulting services to assess the feasibility of issuing bonds, as well as ensures the issuing and bond underwriting among investors on the stock market. The National Bank's policy on the underwriting services market is conservative and includes the assessment of actual risks for all parties involved.

That is ready to provide clients with a full range of services when issuing bonds, including preliminary consultation, assistance in the registration of issuance with the state registration authority, bonds underwriting among investors and payments.

It has sufficient resources letting it to act as a market maker on the market, while potential investors consider the risk of the issuer's business insolvency together with the risk of the National Bank's insolvency.

During the study and preparation of clients' bonds issuing, the Bank conducts a thorough risk analysis of the issuer and investors, and determines measures to manage possible risks, and this allows protecting market participants against the risks.

The Bank can offer other financing flexible tools depending on the enterprise's needs.

In addition to underwriting services, the Bank also offers services to clients of consulting on restructuring and privatization. Why is it advantageous to use these services of the National Bank? Because the Bank has a wide network of foreign partner banks, so it can attract advanced know-how and potential investors to the Uzbek market.