Government business support structures in Uzbekistan are set to issue Eurobonds worth $600mn, according to a recent presidential decree. The decree outlines targets for the Business Development Bank (BDB) and the Entrepreneurship Development Company (EDC) until the end of 2026.
The plan includes the issuance of BDB bonds worth $300mn and EDC bonds of the same amount on international markets. Additionally, the BDB aims to attract $800mn from international institutional investors for supporting small businesses, intending to increase the balance of loans to small enterprises by 1.7 times.
This initiative is expected to boost the share of small businesses in the loan portfolio from the current 28% to 43%. Over the next three years, the goal is to organize or expand the activities of 150,000 business entities with the participation of the BDB.
The EDC will be tasked with providing equity financing to 150 medium-sized enterprises, while another 300 projects are anticipated to be sold to businesses under the "service mortgage" program.
These measures aim to increase the number of medium-level enterprises by 2.5 times, with the total volume of financial services for small and medium-sized businesses projected to grow by 75%, from UZS 8 trillion (over $650mn) to UZS 14 trillion (over $1.1bn).
The Business Development Bank, established on the basis of the Qishloq Qurilish Bank, will focus on supporting commercial enterprises, as stated by the president in August during a dialogue with entrepreneurs. The BDB is also establishing a Small Business Development Fund with assistance centers for small businesses across Uzbekistan. As part of the financial and institutional support program for small businesses, the BDB's authorized capital will be increased to 3 trillion soums.
Earlier Daryo reported that KY & Partners provided advisory services to the Ministry of Economy and Finance of Uzbekistan regarding a tender offer for holders of UZS 2 trillion (approximately $163.6mn) 14.50% notes due 2023. The advisory firm successfully facilitated the placement of $660mn 7.85% notes due 2028 and UZS 4.25 trillion (around $348mn) 16.25% notes due 2026 on the London Stock Exchange. This financial move is groundbreaking, positioning Uzbekistan as a trailblazer in various aspects.
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