Navoiyuran SE places $300 million Eurobond with lowest coupon rate on London Stock Exchange
On January 16, 2025, at a meeting chaired by President Shavkat Mirziyoyev on the effectiveness of works on attracting investments and increasing export in the country, as well as on key future tasks, it was decided that the Navoiyuran State Enterprise, along with several large industrial enterprises in Uzbekistan, would place a $300 million Eurobond.
Consequently, the Company has been assigned a BB- (corporate independent profile BB-, stable outlook) rating by S&P Global Ratings and Fitch Ratings. At the same time, in April this year, the company was assigned an ESG rating of 3rd grade (with 55 points) by the international rating agency Sustainable Fitch.
The investment banks CITI, Abu Dhabi Commercial Bank and Natixis were selected as bank underwriters for the company’s initial international bond issuance, Finasia Capitals as financial advisor, Dentons as legal advisor, and Deloitte as external auditor for “Navoiyuran” SE.
On June 23-24 of this year, business meetings with 64 major international investors was held in London.
During the meetings, detailed information was provided on the results of the system reforms being implemented in “New Uzbekistan”, in particular, the effective results of the transformation carried out in the “Navoiyuran” State Enterprise in 2022-2024, and future development plans.
Qualified and potential investors expressed high interest in the company’s plans to place Eurobonds.
Taking into account the high interest of international investors and the recommendations of bank underwriters, the initial interest rate of the company’s 5-year Eurobond in the amount of 300 million US dollars was set at 7.250-7.375 percent and the order book was declared open.
Due to large orders from international investors, the interest rate was reduced due to the fact that the volume of orders from a total of 93 investors exceeded US$1.3 billion (4.3 times higher than demand), and the final coupon rate was set at 6.70 percent.
As a result, a 5-year Eurobonds of the company in the amount of 300 million US dollars were placed at a coupon rate of 6.70% (0.675% lower than the initial interest rate).
It is worth noting that this year, “Navoiyuran” SE placed its debut Eurobond on the London Stock Exchange with the lowest coupon rate among Uzbek enterprises and organizations.
The proceedings from the placement of Eurobonds will be utilized for projects to increase the Company’s production capacity, expand its transport and technological fleet, increase uranium reserves, and for joint projects with foreign partners.
