Fitch Assigns Rating to Aloqabank US$300 Million Eurobonds

Tashkent, Uzbekistan (UzDaily.com) — Fitch Ratings has assigned final credit ratings to the debut eurobond issuance of Aloqabank, amounting to US$300 million with a coupon rate of 7.7% and a maturity date of 18 May 2031. The bonds were rated at “BB” and “B(xgs),” in line with the agency’s previously expected assessments.

According to Fitch, the final ratings were issued after the receipt of the complete set of issuance documentation confirming the parameters previously disclosed by the bank. The bonds are classified as long-term senior unsecured obligations denominated in US dollars and rank equally with other similar debt instruments issued by the bank.

The agency linked the “BB” rating to its assessment of expected state support, reflected in a “bb” government support rating.

Fitch noted that its analysis takes into account the significant state ownership in Aloqabank’s capital structure, the established track record of capital and financial support from authorities, and the bank’s role in implementing government programs, including preferential lending to young entrepreneurs. It also highlighted that the potential cost of support is relatively low compared to the country’s international reserves.

At the same time, the bank’s standalone credit profile, excluding state support, was assessed at “b,” reflecting its independent creditworthiness.

The bond structure includes financial covenants related to capital adequacy requirements and restrictions on dividend payments, as well as early redemption options.

The put option allows investors to require buyback of the bonds in the event of a loss of state control over the bank, except in cases where the acquirer is an entity rated not lower than the Republic of Uzbekistan.

Additionally, the issuer retains a call option allowing for early redemption of the bonds.