Why is this important
Such placement is an attempt to attract foreign capital and diversify funding sources. Success will be important for market confidence in Uzbekistan’s banking sector and banks’ ability to meet their obligations.
What happened
- The issue consists of $300 million (dollar 5-year bonds) and the equivalent of $100 million (sum 3-year bonds).
- The placement will take place on the Vienna Stock Exchange (MTF).
- The stabilization period is valid from October 2 to November 2, 2025, with the possibility of using up to 5% of the output volume to support prices.
- J.P. Morgan Securities PLC was appointed as the stabilization coordinator; Citi, OTP Bank, Societe Generale, Bank of China, and Mashreq Bank were appointed as managers.
- Previously, in November 2020, Ipoteka-bank had already issued $300 million worth of international Eurobonds with a 5.5% coupon, which is due at the end of October 2025.
- In April 2024, the bank also placed its bonds in soums on the Vienna Stock Exchange at a rate of 20.5% for a period of 3 years.
What they say
The bank’s press release emphasizes that the issue will provide access to international capital markets and strengthen liquidity.
Financial forums note high rates that banks are forced to attract funds in national currency amid competition and pressure on market liquidity.
Context
Ipoteka Bank is one of the key banks in Uzbekistan, with a share in its assets of about 7%. In 2023, the Hungarian OTP Bank acquired 73.71% of the bank’s shares, with the intention of increasing the share to 98% by investing in development. Against the backdrop of the country’s growing external debt and the intensification of global monetary tensions, attracting foreign currency resources is becoming strategically important. Successful placement will show the degree of confidence of international investors in Uzbek bank bonds and the risk premiums they require.
