Uzbekistan plans to issue sovereign bonds for implementing various infrastructures and covering the budget deficit

Shavkat Mirziyoyev approved a number of measures to issue and place sovereign bonds, Kun.uz correspondent reports citing the decree of the head of state.

It should be recalled that in 2019, Uzbekistan plans to issue and place sovereign bonds at a fixed coupon rate of at least $500 million and a circulation period of 5 or more years.

State securities of Uzbekistan will be issued in the form of international bonds – equity securities traded outside the territory of the republic, the initial placement of which is carried out through a group of financial organizations.

The cost of international bonds will be expressed in foreign currency. At the same time, they are not subject to quota requirements and procedure for admission to the placement and circulation of securities established by law.

The volume and other conditions of issuance, placement and depository accounting of international bonds will be determined by the Ministry of Finance, they will also not be subject to mandatory depository registration in the Central Securities Depository of Uzbekistan.

It is worth recalling that as a chief financial advisor in obtaining a sovereign credit rating and issuing sovereign bonds, a consortium of banks led by the largest asset in the US J. P. Morgan Chase.

It is planned that the funds received from the placement of bonds will be used to implement various infrastructure projects, as well as, possibly, to cover the budget deficit.