Developments in Islamic capital markets – Uzbekistan

You may now find our monthly insights on Eikon – Refinitiv, the leading portal for Islamic finance.

This month, we focus on Uzbekistan and the recent “measures to introduce securities based on the principles of Islamic Finance” in the country.

The measures are intended to encourage more FDI and pave the way for Uzbek corporates and quasi-sovereigns to tap into the global capital markets.

The B1-rated sovereign first tapped international capital markets in 2019, issuing a USD1Bn Eurobond. The issuance included two tranches of USD500Mn each. The first tranche had a maturity of five years (4.75% yield) while the other had a maturity of 10 years (5.38% yield). The bond was heavily oversubscribed, with demand from investors exceeding USD8.5Bn. It was followed by bonds from several state-owned companies.

More recently, in November 2020, Uzbekistan placed dual-tranche bond denominated both in US Dollars and Uzbek Soum on the London Stock Exchange Group (LSEG). The Reg S/144A issuance consisted of a 10-year USD555M 3.7% November 2030 tranche and UZS2Bn (USD192.6M) 14.5% November 2023 tranche.

Get in touch to learn more about this development and our market infrastructure offering in Central Asia and beyond.


Dr. Alaa Alaabed
Chief Research Officer

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