05 July 2020

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14 Feb  2019 3169

Uzbekistan has successfully sold Eurobonds on the London Stock Exchange

The Ministry of Finance released the results of the Uzbekistan debut $1 bln bond offering. Papers of 5 and 10 years maturity turned out to be very popular among investors.

The strong orderbook response peaked in excess of ~ US$8.5 bn, allowing the Republic to proceed with a firm price revision and launch the transaction at 4.750% and 5.375% yield for the 5-year and 10-year tranches respectively (down from initial price thoughts of 5.375% area and 6.000% area).

The issue was heavily oversubscribed and well diversified, as final books stood at US $3.8 bn, with around 150 institutional investor orders. In terms of geographical distribution, the 5- and 10-year tranches saw UK investors taking 39% and 32% respectively, whilst US investors had 23% and 31%, Continental European 32% and 27%; and Asian & MENA investors took the remaining 6% and 10% respectively.

By investor type, 75% and 78% of the allocations went to Asset Managers and Funds, 20% and 16% to Insurers, Pension Funds & Sovereign Wealth Funds; whilst Banks and Private Banks took 5% and 6% of the 2024 and 2029 bonds respectively.
The success of the debut Eurobond issue reflects investors’ confidence in Uzbekistan’s solid economic fundamentals, reforms progression and debt management strategy.

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