Banks & Finance

ADB Issues First Uzbek Soum-Denominated Bonds Worth $24.7 Mln

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Alexander Ten
Alexander Ten
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ADB Bonds Uzbekistan
The $24.7 mln issuance carries a 14.5% coupon and was arranged by Merrill Lynch; proceeds will go toward supporting female entrepreneurs outside Tashkent

The Asian Development Bank (ADB) has issued its first-ever bonds denominated in Uzbek soums, raising 312 bn UZS (equivalent to $24.7 mln), the institution’s press service reported.

The bonds were placed at par with a coupon rate of 14.5% per annum and a three-year maturity. The issuance was arranged by Merrill Lynch International, a subsidiary of U.S. financial giant Bank of America.

According to the ADB, proceeds from this gender bond will be used to support women-owned businesses outside the capital city of Tashkent.

In addition, ADB also successfully placed 30 bn Mongolian tugrik-denominated bonds (approximately $8.4 mln). Standard Chartered Bank acted as the guarantor for the Mongolian currency bond issue.

The funds raised from the tugrik bonds will go toward financing the expansion of a hospital in Mongolia, the bank said.

Kursiv Uzbekistan also reports that 72 foreign IT companies paid a total of 78.2 bn UZS (approximately $6.1 mln) in taxes to the state budget of Uzbekistan.

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