Tashkent, Uzbekistan (UzDaily.com) — Navoi Mining and Metallurgical Company (NGMK) successfully priced its debut US$1 billion dual-tranche bond offering, consisting of US$500 million in 4-year notes at 6.70% and US$500 million in 7-year notes at 6.95%.

This transaction represents a number of key milestones for both NGMK and the region as a whole.

It boasts the largest order book for any Uzbek issuer since the country’s sovereign debut in 2019, reaching US$5.5 billion (over 5.5 times oversubscribed).

Furthermore, it marks Uzbekistan’s first corporate issuance in global debt capital markets since November 2021.

In addition, this deal ranks among the largest corporate bond offerings from the CIS region since July 2020 and is the biggest ever from Uzbekistan, aside from sovereign issuances.

The pricing reflects the tightest premium to sovereign debt achieved by a quasi-sovereign issuer from Uzbekistan, with premiums of just 20 basis points on the 4-year tranche and 7.5 basis points on the 7-year tranche.

Before launching the transaction, NGMK received its first-ever credit ratings, with its standalone credit profile rated higher than the sovereign: bb+ by S&P and bb by Fitch, both capped at Uzbekistan’s sovereign rating of BB-.

Benefiting from favorable market conditions, NGMK announced the mandate on Friday, October 4, and held a three-day hybrid roadshow, engaging over 150 investors globally through one-on-one and group meetings as well as in-person sessions in London.

Eugene Antonov, NGMK's First Deputy CEO and Chief Transformation Officer, commented: “This bond issue is remarkable both for its scale and the competitive coupon rates secured during pricing. Strong investor interest underscores NGMK's leadership in the mining sector and highlights the culmination of years of transformative work within the company. We are pursuing ambitious strategic objectives—enhancing production at current mines, exploring new territories, and driving digitalization across our operations—aiming to become a truly global mining company. Our world-class assets and operational efficiency will continue to deliver strong returns for our investors.”

Jakhongir Khasanov, Deputy General Director and Chief Financial Officer, added: “Our inaugural bond offering is the beginning of what we believe will be a long and successful relationship with global investors. This achievement is significant not just for NGMK but for the Republic of Uzbekistan, where NGMK plays a critical role in the economy. The overwhelming response from investors highlights the company’s financial health and resilience. We remain committed to investing in future growth and sustainable expansion.”

NGMK plans to use the net proceeds from the bond offering for general corporate purposes, including financing its capital expenditure program, repaying or prepaying existing debt, funding working capital, and covering other operational expenses. The new issue will allow NGMK to refinance existing debt under more favorable terms while setting benchmarks for future bond issuances.