TASHKENT/DEC. 21 (The Conway Bulletin) – Uzbekistan is making final preparations to issue a $500m bond in Q1 2019, sources told Reuters the day after the Fitch ratings agency had given Uzbekistan its first credit rating.
Uzbek officials have also appointed four banks — JP Morgan, Deutsche Bank, Citi and Gazprom Bank — as its advisers for the issue which will mark a high for President Shavkat Mirziyoyev. He took over as Uzbekistan’s president in September 2016 promising to open up the country after 25 years of rule by the reclusive Islam Karimov.
Speaking on condition of anonymity, one Reuters source said: “They (Uzbek officials) met with investors in late November and the feedback was positive from most.”
The Uzbek debt issue will give international investors looking for greater returns yet another chance to invest in Central Asia. Last year, Tajikistan issued its first debt and this year, Kazakhstan also issued debt.
Fitch’s rating of BB- for Uzbekistan is the same as Turkey, above Tajikistan but below Kazakhstan. Giving out its first sovereign rating, Fitch said that Uzbekistan had “embarked on an ambitious and comprehensive reform programme” but that there were risks.
“A fast-moving, complex and broad reform agenda create some concerns regarding coordination and institutional capacity of the public administration to effectively plan and execute policy measures while minimising economic distortions,” Fitch said.
ENDS
>>This story was first published in issue 395 of The Conway Bulletin on Dec. 23 2018
