Uzbekistan issued bonds at a record-low 12.25%

According to the press service of the Ministry of Economy and Finance, on April 1, Uzbekistan issued sovereign international bonds denominated in the national currency, worth approximately $1 billion, at a record-low interest rate of 12.25%.

For comparison, in 2024, the interest rate on 3-year bonds issued in the national currency was 16.625% (3 trillion UZS), and in 2025, it was 15.5% (6 trillion UZS).

On April 1, a global conference call took place with 32 major international investors from the United States, Europe, the United Kingdom, Asia, and the Middle East. During the call, detailed information was shared about the objectives of the Uzbekistan 2030 Strategy, the reform results, the macroeconomic situation, and plans.

During the day, nearly 50 foreign investors submitted applications totaling 23.4 trillion UZS. Consequently, 3-year bonds valued at 12.2 trillion UZS were successfully issued at a rate of 12.25%.

This transaction was the largest in the past 15 years in terms of local-currency bond issuance across Central and Eastern Europe, the Middle East, and Africa.

The possibility of adding these bonds to the GBI-EM index is under consideration. This could attract new investors and lead to further reductions in interest rates over time.

The funds raised through the international bond issuance will be used to finance the state budget deficit in accordance with the Law “On the State Budget of the Republic of Uzbekistan for 2026”.

Nasiba Ziyodullayeva, UzA