Uzbekistan has successfully issued sovereign international bonds in its national currency totaling the equivalent of $1 billion at a "historically low rate" of 12.25%, the Ministry of Economy and Finance said.

Launched on global financial markets on April 1, this placement marks the largest-ever issuance of sovereign bonds denominated in Uzbek soums. For context, the yields on similar 3-year securities stood significantly higher in previous years, reaching 16.625% in 2024 (3 trillion soums) and 15.5% in 2025 (6 trillion soums).

The issuance was preceded by a global investor call featuring 32 major institutional investors from the U.S., Europe, the UK, Asia, and the Middle East. Participants were briefed on the "Uzbekistan-2030" strategy, the results of ongoing structural reforms, the current macroeconomic climate, and the nation’s future development roadmap.

The Ministry noted that despite heightened geopolitical tensions in the Middle East, investors maintained a positive outlook on Uzbekistan's macroeconomic stability and the consistency of its reform agenda—factors that have already contributed to an improved sovereign credit rating.

Demand was exceptionally strong: throughout the day, nearly 50 foreign investors submitted bids totaling 23.4 trillion soums, oversubscribing the initial offer by approximately four times. Consequently, 3-year bonds worth 12.2 trillion soums were placed at a rate of 12.25%, which is, on average, 14 basis points lower than prevailing domestic market rates.

Officials emphasized that while global uncertainty has forced many regional issuers to offer higher rates for local-currency debt, Uzbekistan’s deal stands out as the largest national currency bond placement in 15 years across the CEEMEA region (Central and Eastern Europe, Middle East, and Africa).

Furthermore, there is potential for these bonds to be included in the GBI-EM (Government Bond Index – Emerging Markets). Inclusion could tap into a pool of asset managers overseeing roughly $300 billion, potentially driving down borrowing costs even further in the future.

The proceeds from this placement will be utilized to finance the state budget deficit in accordance with the 2026 Budget Law. The deficit is projected at 60.1 trillion soums (up from an initial estimate of 58.9 trillion) and is mandated to remain within 3% of the nation's GDP.