Tashkent, Uzbekistan (UzDaily.com) — On 8 July 2025, the Joint-Stock Company "National Bank for Foreign Economic Activity of the Republic of Uzbekistan" (NBU) successfully completed the placement of Eurobonds on international capital markets, raising a total of US$418 million.

The transaction was structured in two tranches: the first totaling USUS$300 million with a five-year maturity and a coupon rate of 7.2%, and the second denominated in the national currency — 1.5 trillion soums — with a three-year maturity and a yield of 17.95%.

Leading global investment banks participated in the offering, including J.P. Morgan, Citi, Societe Generale, Natixis, Standard Chartered, Mashreqbank, Abu Dhabi Commercial Bank, Oman Investment Bank, and Commerzbank. Legal counsel was provided by Dentons, while Deloitte & Touche handled audit support.

The issuance drew strong interest from investors, with total demand exceeding US$1.3 billion — including US$1.04 billion in foreign currency and 3.1 trillion soums. This allowed the bank to significantly lower its pricing: the dollar-denominated tranche was reduced by 130 basis points (from 8.5% to 7.2%), and the soum tranche by 192.5 basis points (from 19.875% to 17.95%). Notably, for the first time, a marked compression of the spread against Uzbekistan’s sovereign bonds was recorded: minus 50 basis points for the dollar tranche and minus 105 basis points for the soum tranche.

The successful placement was driven by several key factors, including the upgrade of the bank’s credit outlook to “positive” by S&P and Moody’s, Fitch Ratings’ upgrade of its long-term rating from “BB-” to “BB” with a stable outlook, ongoing institutional reforms, strong profitability, and solid capital adequacy.

As of the first half of 2025, NBU reported robust financial performance: total assets reached 141.8 trillion soums (approximately US$11.2 billion), its loan portfolio stood at 109.3 trillion soums (US$8.6 billion), equity capital amounted to 19.3 trillion soums (US$1.6 billion), and net profit totaled around 1 trillion soums (US$80 million).

In line with the directive of the President of Uzbekistan, NBU has been tasked with raising US$1.2 billion in external financing in 2025. These funds will be directed toward priority investment and infrastructure projects in housing, tourism, transport, healthcare, and energy, as well as supporting small and medium-sized enterprises and developing local communities (mahallas).

Importantly, NBU became the first commercial bank in Uzbekistan to publicly issue bonds in the national currency on international capital markets. The proceeds in soums will be used for regional development projects, including housing construction, youth support, and service sector expansion.

This placement marks the first transaction of its kind following the upgrade of Uzbekistan’s sovereign credit rating and sets a significant precedent for other commercial banks in the country aiming to enter global financial markets.