Uzbekistan adopts simplified bond rules for IFIs

The National Agency for Prospective Projects has approved a regulation governing the issuance and state registration of bonds by international financial institutions (IFIs) denominated in Uzbekistan’s national currency.

The framework was developed in line with Presidential Decree on further measures to develop housing and mortgage markets. It incorporates international best practice and recommendations from the Asian Development Bank, the European Bank for Reconstruction and Development, the International Finance Corporation and other major IFIs.

Under the new rules, IFIs will be able to raise funds by issuing bonds and listing them on Uzbekistan’s stock exchange to finance their projects in the country. This will also enable domestic investors to diversify their portfolios with a new, high-credit-rating investment tool.

For context, in June 2016 the EBRD issued the first IFI bonds on the Georgian Stock Exchange worth 107 mln lari (equivalent to €43.9 mln). In August 2018 the IFC placed bonds on the Kazakhstan Stock Exchange valued at 8.6 bn tenge (about US$25 mln).

The regulation introduces a simplified procedure for registering IFI bonds in the national currency, which includes:

no need for prior approval of the issuer’s documents by the regulator
registration based on an issuer’s questionnaire containing the required information
shorter review and registration timeframes
the option to submit documents in paper or electronic form, including by email
the possibility of issuing IFI bonds as exchange-traded bonds

Officials say the measure will expand the range of financial instruments on Uzbekistan’s securities market, improve liquidity, enhance institutional investor confidence and strengthen the country’s position as a reliable jurisdiction for issuing debt instruments in the national currency.

Kursiv also reports that the United States has approved its first major piece of cryptocurrency legislation.