On January 18, Saipro Group made history by becoming the first private company in Uzbekistan to issue "green" bonds, with a total value of UZS 50bn ($4mn), and each bond valued at UZS 50mn ($4,047). The Direct Investment Fund of the Republic of Uzbekistan (UzDIF) backed this pioneering initiative, becoming the initial investor by acquiring over 10% of the newly issued corporate green bonds. Speaking with Daryo’s Senior Editor UzDIF’s CEO, Mr. Atabek Nazirov, with an evident passion for green initiatives, shared insights into this groundbreaking investment.
"We are discussing what is probably the first private sector-driven bond issuance done by a local company in ecotourism," Nazirov stated. This investment, amounting to less than $5mn, is seen by UZDIF as a strategic and significant move. "We've invested about UZS6 bn, around $524,000 equivalent. It's a small amount, but it was important for us to endorse and make a breakthrough," he explained.
The focus of this investment is the Bostanliq region, where funds will be used for developing eco-tourism and renewable solar energy projects. Nazirov believes this to be a "really brave move by the company," particularly in the current context of electricity shortages.
Nazirov highlighted the thorough process behind this investment, including obtaining green certification from the Astana International Financial Center's Green Finance Initiative Center. This ensured the compliance of the project with international green standards. "We helped the company arrange this transaction and ensured that the use of proceeds from this bond issuance will comply with the International Standards on Global Green Initiative," he added.
The choice of this investment was driven by Uzbekistan’s rich historical heritage and untapped natural beauty, making ecotourism a promising sector. Nazirov commented on the potential of the industry, saying, "Uzbekistan has great sceneries, untapped jewels that are unexplored. So, the Bostanliq area, about an hour and a half away [from Tashkent], has some great locations for tourism."
Nazirov sees this investment as a trendsetter, not just for domestic investors but also for the global investor community. He emphasized the importance of the move, saying, "It sends a message to the global investor community that, despite challenges in raising money, we can put our trust into small, exotic deals."
Looking ahead, Nazirov is optimistic about expanding this model to a broader range of businesses. He anticipates a surge in demand for green investments in Uzbekistan, aligning with the government's push for a green economy and renewable energy. He emphasized the changing dynamics in the private market, stating,
"What we see in the private market is that businesses are willing to share more profit with external investors as they want to get access to capital. Over time, that culture of risk and profit sharing will be more systemic in our capital and financial ecosystem, and will create more instruments, in a snowball effect."
Watch the video below for full details of the conversation:
Written by Tawney Kruger
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