Uzbekistan successfully places debut bonds for US$1bn

Tashkent, Uzbekistan (UzDaily.com) -- Following an extensive marketing exercise in New York, Boston and London, the Republic of Uzbekistan successfully priced its inaugural US$1 billion dual-tranche bond offering on 13 February 2019.

The 144A / Reg S offering was formed by a dual US$500mm 4.750% tranche due February 2024 and a US$500mm 5.375% due February 2029.

The strong orderbook response peaked in excess of ~ US$8.5bn, allowing the Republic to proceed with a firm price revision and launch the transaction at 4.750% and 5.375% yield for the 5-year and 10-year tranches respectively (down from initial price thoughts of 5.375% area and 6.000% area).

The issue was heavily oversubscribed and well diversified, as final books stood at US$3.8bn, with around 150 institutional investor orders. In terms of geographical distribution, the 5- and 10-year tranches saw UK investors taking 39% and 32% respectively, whilst US investors had 23% and 31%, Continental European 32% and 27%; and Asian & MENA investors took the remaining 6% and 10% respectively.

By investor type, 75% and 78% of the allocations went to Asset Managers and Funds, 20% and 16% to Insurers, Pension Funds & Sovereign Wealth Funds; whilst Banks and Private Banks took 5% and 6% of the 2024 and 2029 bonds respectively.