Uzbekistan has placed a new round of sovereign international bonds worth approximately $1.5bn on global financial markets. Investor demand was strong, with total orders reaching $4.2bn across multiple currencies.
The bond placement, announced on February 18 and 20, saw significant interest from investors in London. The following bonds were offered:
- 7-year bonds in US dollars with $2bn in orders,
- 4-year bonds in euros with €1.6bn in orders,
- 3-year bonds in Uzbek soums with UZS 7.3 trillion in orders.
The issued bonds recorded the following interest rates: 7-year US dollar bonds amounting to $500mn were placed at 6.95%, compared to 7.125% for similar bonds issued in May 2024.
The 4-year euro bonds, valued at €500mn (equivalent to $525mn), were issued at 5.1%, down from 5.375% for 3-year bonds in 2024.
The 3-year soum bonds, worth UZS 6 trillion ($463mn), had an interest rate of 15.5%, lower than the 16.625% rate for similar bonds in 2024. For comparison, the domestic financial market’s 3-year treasury bond interest rates ranged from 15.6% to 16.1% in early 2025.
The proceeds from these bonds will be directed towards several key areas. A portion will be used to finance the approved State Budget deficit for 2025. Additionally, funds will support housing programs through commercial banks, making homeownership more accessible for citizens.
Another allocation will go toward education and infrastructure, including the construction, repair, and modernization of secondary schools, preschools, and other social facilities.
Uzbekistan issued its 4-year euro-denominated bonds with a "Green" status, aligning with its commitment to Sustainable Development Goals (SDGs). The proceeds from these green bonds will be used for environmentally friendly projects, including water-saving technologies, sanitation initiatives, and other sustainability-driven developments. A report detailing the allocation and impact of these funds will be published following international standards.
Between 2021 and 2024, Uzbekistan issued a total of $1.2bn in sovereign international bonds with SDG and Green Bond status. The United Nations Development Program (UNDP) participated in the project selection process, while Sustainalytics provided an independent assessment of the program.
Earlier, Zakhro Murtazaeva, a financial analyst at Avesta Investment Group, highlighted that Uzbekistan’s regular bond issuance plays a crucial role in setting a benchmark for corporate issuers.
“The yields on sovereign eurobonds serve as a reference point for state-owned banks and large enterprises seeking to raise capital in global markets,” she explained. “If the government halts regular bond issuances, corporations will face difficulties in pricing their own debt, resulting in higher borrowing costs and greater market uncertainty.”
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