Tashkent, Uzbekistan (UzDaily.uz) — Uzebkneftegaz JSC is continuing to optimize its credit portfolio as part of the company’s financial recovery program. In the first nine months of 2026, the company refinanced and repaid US$384 million in loans ahead of schedule, helping reduce interest expenses.
The company’s main objective is to refinance existing loans with high interest rates on more favorable terms without increasing its new debt burden.
At the same time, Uzebkneftegaz plans to gradually reduce the share of loans secured by state guarantees.
The company currently has 69 loan agreements. During the nine-month period, 41 loan agreements were refinanced and fully repaid ahead of schedule.
According to the company’s estimates, failure to implement these measures would have resulted in an additional US$18 million in interest expenses.
Average interest rates on loans from local banks were reduced from 9.5%-12% to 7.4%-7.5% per year. As a result, the company’s credit burden fell for the first time during the nine-month period, from 3.1% to 2.2%.
Uzbekneftegaz has identified the refinancing of major loans totaling US$1.1 billion secured by state guarantees as its next priority.
Under the first initiative, the company plans to refinance a loan with an outstanding balance of US$260 million. Its interest rate will be reduced from a floating rate of 5% per year to a fixed rate of 3.75%.
The switch to a fixed rate will also reduce risks associated with potential changes in interest rates on international financial markets.
As a result of the refinancing, the state guarantee of up to US$260 million is expected to be canceled. The economic effect of the transaction is estimated at up to US$5 million.
The second initiative concerns loans secured by state guarantees under the Uzbekistan GTL project. The outstanding principal on these loans amounts to US$840 million.
Over the past three months, Uzebkneftegaz has held negotiations with international banks and selected financing terms that the company considers the most favorable.
Under the plan, the loans will be refinanced for four years at a fixed interest rate of 3.8% per year.
The average interest rate on the existing floating-rate loans is 7.7%.
Following the refinancing, the state guarantee of up to US$840 million will be canceled. The company also expects to optimize interest and other financial expenses.
The expected economic effect of this initiative is estimated at up to US$60 million. In addition, the fixed rate will eliminate risks associated with a potential increase in borrowing costs in subsequent years.
Overall, the company estimates the combined economic effect of the two priority refinancing transactions at up to US$65 million.
Uzbekneftegaz plans to continue optimizing its credit portfolio, reducing financing costs and strengthening its financial stability. The company also links these measures to improving its investment attractiveness.
