Uzbekistan raises $1 billion in bond market debut

Uzbekistan said Thursday it made a splash with a $1 billion eurobond issue in its first foray into the international debt market. The formely Soviet country became a red flag for investors under ex-president Islam Karimov who took a conservative approach to external debt and favoured a strongly protectionist economic model that led to economic stagnation. Finance ministry official Abbos Djurabayev confirmed the benchmark bond issue had been quickly snapped up by investors.
"The placement of the Eurobonds is a sign of the transparency of Uzbekistan," Djurabayev told AFP in a telephone interview. "By doing this we want to say that the risks for investment in the economy of the country are minimal." The current President Shavkat Mirziyoyev has declared the country open for business and the eurobond issue was entirely bought by investors apparently undeterred by a cautious BB- sovereign credit rating from Standard and Poor's agency in December.