Tashkent, Uzbekistan (UzDaily.com) — TBC Bank Uzbekistan (TBC UZ) has successfully placed its second bond issuance, amounting to US$10 million.

According to the bank, TBC UZ issued two-year bonds that will be listed on the Republican Stock Exchange "Toshkent" (UZSE).

The US$128 billion soums bond offering, with a yield of 24%, is the largest corporate bond issuance by a digital bank in Uzbekistan and one of the largest by any company on the local market.

The transaction was jointly managed by TBC Capital and Avesta Investment Group. The funds raised will be used to accelerate TBC UZ’s profitable growth in Uzbekistan, the most populous country in Central Asia.

This second bond issuance, over three times the size of TBC UZ’s debut offering, reflects investors’ strong confidence in the digital bank’s growth strategy and market leadership.

TBC Uzbekistan, part of the London-based TBC Bank Group PLC, serves 17 million unique registered users through TBC Bank Uzbekistan, the digital payment app Payme, and the installment service Payme Nasiya. In the first nine months of 2024, TBC Uzbekistan reported significant growth, with its loan portfolio expanding by 99% year-on-year to US$460 million and total operating income rising by 94% to US$102 million.

Nika Kurdiani, CEO of TBC Group’s operations in Uzbekistan, remarked:
“This bond issuance highlights investors’ trust in TBC Uzbekistan’s remarkable performance, innovative approach, and ability to unlock the vast potential of this dynamic market. We remain committed to delivering innovations that simplify and enhance financial services for our customers. As we scale our profitable growth, we continue to focus on diversifying funding sources and contributing to Uzbekistan’s economic development.”

The successful completion of this transaction was made possible through the collaborative efforts of TBC Capital and Avesta Investment Group, whose expertise in capital markets was instrumental in the bond issuance. Their strategic guidance and efficient execution ensured the deal was completed on time and met stakeholder expectations.

The bonds were backed by leading institutional investors: 70% of the issuance was acquired by Abu Dhabi Uzbek Investment (ADUI), while the remaining 30% was purchased by Azerbaijan Uzbek Investment Company (AUIC). Both investors are prominent quasi-sovereign funds supported by the Abu Dhabi Development Fund, the Ministry of Economy of Azerbaijan, and the Uzbekistan Reconstruction and Development Fund.

In addition to the bond issuance, 2024 has been a record-breaking year for TBC UZ. The bank secured US$75 million in equity capital and US$105 million in wholesale financing. These funds have bolstered the bank’s loan portfolio and diversified its funding sources to sustain rapid growth. Key financing partners include a US$40 million loan from FMO, US$20 million credit lines from responsAbility Investments AG, US$25 million debt financing from BlueOrchard, and US$10 million loans from the European Bank for Reconstruction and Development (EBRD) and the Global Gender-Smart Fund (GGSF) via Triple Jump.

Sarvar Khamidov, CEO of Abu Dhabi Uzbek Investment, stated: “We are honored to participate in this landmark bond issuance by TBC Bank Uzbekistan, which underscores ADUI’s confidence in Uzbekistan’s dynamic economic growth and the stable development of its financial sector. This investment reaffirms TBC Uzbekistan’s leadership as the largest digital bank in the country and its strategic role in promoting innovation and inclusivity in finance.”

Nazim Gadzhiev, CEO of Azerbaijan Uzbek Investment Company, added: “TBC Uzbekistan’s bond issuance and AUIC’s acquisition of these bonds represent a significant milestone in the development of the region’s financial market. This transaction reflects the growing interest in Uzbekistan’s investment opportunities and confirms international investors’ trust in the country’s economic stability and potential.”

“AUIC is committed to supporting companies driving growth in strategically important sectors such as banking and fintech. We are confident that this bond issuance will strengthen TBC Uzbekistan’s financial position and enable the company to execute its expansion and innovation plans, benefiting businesses and consumers across the region,” he concluded.