ADB issues bonds in Uzbek sums for first time

The Asian Development Bank (ADB) has issued its first Uzbekistan sum (UZS) denominated bond, raising UZS312 billion (approximately $24.7 million equivalent), Report informs referring to the bank.

Arranged by Merrill Lynch International, the bond was priced at par with a coupon of 14.5% with a final maturity of 3 years. Proceeds of this gender bond were disbursed to support women-owned enterprises outside the capital, Tashkent.

ADB is continuing the expansion of its local currency bond program, which enables its members to access local currency financing at competitive rates while simultaneously mitigating borrowers’ currency risks, thereby supporting more efficient and inclusive development.

In July, ADB priced its third Mongolian togrog (MNT) bond for the year, which raised MNT30 billion (approximately $8.4 million). The bond was priced at par with a coupon of 10.30% and has a maturity of 3 years. It was underwritten by Standard Chartered Bank and was fully allocated to asset managers in Europe. Proceeds of this health bond will be used to finance a hospital expansion project in Mongolia.

“The inaugural UZS denominated bonds not only increased the number of currencies in which ADB can issue, but also allowed us to reach a new set of investors. On the other hand, the MNT bond reflects ADB’s successful and growing local currency operations in Mongolia,” said ADB Treasurer Tobias Hoschka. “These bond issues reflect ADB's efforts to assist borrowers who are most vulnerable to foreign currency risks in such frontier markets and reinforce our strategic commitment to advancing local currency financing initiatives.”

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.