Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan has successfully placed another round of sovereign international bonds on global financial markets, raising approximately US$1.5 billion.

On February 18 and 20, an announcement was made in London regarding the opening of applications for 7-year U.S. dollar bonds, 4-year euro bonds, and 3-year bonds in the national currency.

The total demand for Uzbek international bonds reached US$4.2 billion, including:

US$2 billion for 7-year U.S. dollar bonds

€1.6 billion for 4-year euro bonds

7.3 trillion soums for 3-year soum-denominated bonds

As part of the issuance, Uzbekistan placed US$500 million in 7-year bonds with an interest rate of 6.95%—a decrease compared to the 7.125% rate for similar bonds issued in May 2024.

The 4-year euro bonds raised €500 million (approximately US$525 million) at a 5.1% interest rate, down from 5.375% for 3-year euro bonds in 2024.

The 3-year soum-denominated bonds were issued at a total value of 6 trillion soums (US$463 million) with an interest rate of 15.5%, lower than the 16.625% rate in 2024. In January–February 2025, the domestic financial market offered yields of 15.6%–16.1% for 3-year treasury bonds.

The proceeds from these bonds will be used to finance Uzbekistan’s 2025 state budget deficit and support the mortgage program by providing commercial banks with necessary resources.

The euro-denominated bonds were issued as "green bonds" under Uzbekistan’s Sustainable Development Goals (SDG) financing program. The funds will be allocated to water-saving technologies, sanitation system improvements, and other environmental initiatives. Their use will be transparently reported in accordance with international standards and made publicly available.

From 2021 to 2024, Uzbekistan issued US$1.2 billion in green and ESG bonds, with fund allocation overseen under international standards. Project selection is carried out with the involvement of the United Nations Development Programme (UNDP), while Sustainalytics, a consulting firm, provides an independent assessment.

The funds raised from the U.S. dollar and soum bonds will be directed toward housing programs, as well as the construction, renovation, and modernization of schools, kindergartens, and other social infrastructure projects.