Samarkand Bonds trades on the London Stock Exchange
Tashkent, Uzbekistan (UzDaily.com) --
An official ceremony of launch of IFC’s bonds nominated in soums, Samarkand bonds, was held at the London Stock Exchange on 20 June.
In his opening speech, Chief Executive Officer of the London Stock Exchange Nihil Rati noted that the London Stock Exchange is pleased to welcome the first ever placement in the international capital market of IFC bonds denominated in Uzbek soums. According to him, this event will not only attract additional financing for the development of companies in Uzbekistan, but will also contribute to the enhancement of the international image of the Uzbek national currency.
Economic Secretary to the Treasury and City Minister John Glen pointed to the multi-vector historical connection between Great Britain and Uzbekistan, rooted in the time of the Temurids. He called the successful placement of bonds in the Uzbek currency a truly historic event. The British minister said that the key role of the London Stock Exchange as an international financial center and an important hub for investors. In his opinion, the development of cooperation between Uzbekistan and the exchange will bring to a qualitatively new level the trade and economic and investment cooperation between the two countries.
After the official ceremony, a round table was held on investment opportunities in Uzbekistan and the country’s entry to international capital markets. About 60 representatives of leading investment banks and foundations, international financial institutions, business and official circles of Britain, as well as journalists from influential publications - The Financial Times, Bloomberg, The Banker, fDi Magazine, Global Markets (Euromoney) and other media participated in the event.
Representatives of Uzbekistan informed the audience about the current stage of large-scale economic reforms in the country, as well as priorities in terms of attracting foreign investment. It was emphasized that the dynamically developing Uzbekistan intends to become an active participant in the international capital markets.
During the round table, international investors were interested in the country’s plans for obtaining a sovereign rating, issuing government bonds and corporate bonds. As a result of the discussions, the participants agreed that today’s event is evidence of Uzbekistan’s transition to a new stage of development, opening access to international capital markets and allowing it to attract foreign investment into the country’s economy.
On 18 May, the International Finance Corporation placed bonds nominated in Uzbek soums and called Samarkand Bonds at the London Stock Exchange. The total volume of the issue was 80 billion soums (10 million US dollars), the maturity period is two years, the coupon rate is 9.5% per annum. The proceeds will be used to open a credit line in national currency at Hamkorbank to finance small and medium-sized business projects in Uzbekistan.