NBU Successfully Places Bonds on the London Stock Exchange

                       

On June 27, 2024, the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) successfully placed bonds on the London Stock Exchange in two tranches, totaling $411 million USD:

1) 300 million USD with a maturity of 5 years and a coupon rate of 8.5%;

2) 1.4 trillion UZS with a maturity of 3 years and a coupon rate of 19.875%.

NBU's bond placement follows the Republic of Uzbekistan's successful issuance of sovereign bonds on May 21, 2024, totaling $1.5 billion USD across three currencies on international financial markets.

To ensure the success of its bond issuance, NBU collaborated with leading global underwriters, legal, and auditing firms, including:

· Underwriter Banks: JP Morgan (USA), Citibank (USA), Deutsche Bank (Germany), NATIXIS (France), Societe Generale (France), Standard Chartered Bank (United Kingdom), First Abu Dhabi Bank (UAE), Mashreqbank (UAE).

· Auditing Firms: Deloitte & Touche, Ernst & Young.

· Legal Advisors: Dentons and Linklaters.

The funds raised through the bond placement on the London Stock Exchange will primarily be allocated to fulfill the directives of the President of the Republic of Uzbekistan issued during the May 20 meeting regarding the attraction of foreign investments by commercial banks. These funds will also finance critical investment projects across various sectors of the economy, contributing significantly to the stimulation of economic growth in the country.

It is noteworthy that NBU became the first among commercial banks in the Republic of Uzbekistan to issue bonds in the national currency on the international financial market. The funds raised in the national currency will be allocated to finance projects across various industries aimed at ensuring employment in the regions of the republic, constructing modern multi-story housing, developing the service sector, and ultimately improving the living standards of the population.

Despite the ongoing complex geopolitical situation in the world, the successful placement of NBU bonds on the international financial market demonstrates international investors' trust in the large-scale and rational reforms being implemented by the President of the Republic of Uzbekistan Shavkat Mirziyoyev.

This bond transaction by NBU will serve as a benchmark for other commercial banks and enterprises in the Republic of Uzbekistan.

For Reference: Founded in 1801, the London Stock Exchange is one of the world’s leading stock exchanges and is located in the financial center of the United Kingdom. The exchange facilitates the buying and selling of securities of various companies, enabling them to attract funds for business development.