Uzbekistan planned US$1bn bond issue to set stage for corporate debt sales; Uzbekistan intends to increase the volume of textile exports up to $ 7 billion; The state share of the hotel “Uzbekistan” to be put for sale; BCG: The investment potential of Uzbekistan is up to US$65 billion; Tashkent Metallurgical Plant to produce the first products in December 2019;
Uzbekistan planned US$1bn bond issue to set stage for corporate debt sales
Uzbekistan plans to follow up an upcoming $1 billion international bond market debut with regular debt sales while the country’s banks are also expected to seek funds overseas, fund managers said on Tuesday.
Reuters reported that the delegation of Uzbekistan during a roadshow in London stated that the Government of Uzbekistan plans to sell two tranches with a 5- and 10-year maturity with each tranche at least benchmark sized, or $500 million.
Uzbek Deputy Minister and Finance Minister Jamshid Kuchkarov stated that Uzbekistan plans to place another eurobonds in 2020.
Uzbekistan intends to increase the volume of textile exports up to $ 7 billion
By 2025, Uzbekistan intends to increase the volume of textile exports up to seven billion dollars through the processing of the entire volume of cotton yarn produced in the country. This is stated in the decision of Shavkat Mirziyoyev.
According to the Presidential decree, the Cabinet of Ministers of the Republic must approve the Concept of Accelerated Development of the Textile and Knitting Industry for the Period 2019-2025 within three months.
The concept provides for the analysis of domestic and foreign markets for textile products and ensuring the competitiveness of Uzbek textiles.
The state share of the hotel “Uzbekistan” to be put for sale
The state put up for sale its stake in the hotel “Uzbekistan”, setting a starting price of $ 33 million. Now the state owns 80.13% in the joint venture “Otel O’zbekiston” LLC, which manages the hotel building.
The maximum payment term is three years. The buyer will need to invest 100 billion UZS of investment over two years. The funds will be spent on the modernization and, if necessary, the reconstruction of the hotel complex.
Under the terms of the sale, the new owner will have to retain the main activity (hotel services) for 10 years, as well as leave the facade of the building unchanged and attract qualified professionals to manage the hotel
BCG: The investment potential of Uzbekistan is up to US$65 billion
According to the findings of the new BCG report “Investments in Central Asia: One Region, Many Opportunities”, Uzbekistan’s investment potential is US$65 billion, including US$20 billion in non-extractive industries.
The report for the first time considers the region of Central Asia in a complex, including all five of its member countries – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
“Today, the region has an opportunity to change the trajectory of development,” said Reza Nuriev, partner and managing director, head of the BCG in the Central Asian and Caspian regions. – Improving public institutions, significant (albeit uneven) economic growth and the liberalizing influence of the younger generation together created a stronger basis for cooperation between the countries of Central Asia, especially in such priority areas as cross-border transport infrastructure, energy, ICT, and reforms to support market trading, investment-based diversification and integration. To fully realize the potential of the region, it is necessary to develop coordination between countries, and the success of this process largely depends on two key states – Kazakhstan and Uzbekistan. A strong partnership between them could be the first step towards developing cooperation in the region as a whole.”
Tashkent Metallurgical Plant to produce the first products in December 2019
Tashkent Metal Works (TMZ) will issue the first cold-rolled sheet in December 2019, the enterprise’s press service reported.
The total project cost exceeds 286 million euros. The MetProm group of companies has been selected as the general contractor for the construction of the TMZ. Today, it is one of the leading design and construction organizations in the metallurgical industry in Russia.
Production will reach full capacity within two years of production, the planned share of exports will be 20 percent of total production.
Export is envisaged to such countries as Iran, Turkey, Afghanistan, Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Ukraine, Latvia, Lithuania, Estonia. In most of these countries there is no such production, and the demand for rolled metal products is significant. Entering these markets, the enterprise will compete with Russia and China.