Tashkent, Uzbekistan (UzDaily.com) -- The Ministry of Finance of Uzbekistan has placed two tranches of international bonds (eurobonds) in the amount of US$555 million and 2.5 trillion soums, respectively.

According to the Ministry of Finance, the first tranche in US dollars was placed for a period of 10 years and the second tranche in Uzbek soums - for a period of 3 years. Initial interest rates on the London Stock Exchange were around 4.25% -4.375% and 14.5% respectively.

The demand for Eurobonds of Uzbekistan exceeded US$1 billion for the first tranche and 2 trillion soums for the second tranche. As a result, interest rates fell.

As a result of trading, Uzbekistan placed Eurobonds in US dollars in the amount of US$635 million and 2.5 trillion soums. The profitability of the first tranche was estimated at 3.9%, and the second tranche - at 14%. The main buyers of Eurobonds both in dollars and in soums were investment funds (92%). At the same time, investors from the USA (56%) and Great Britain (23%) bought eurobonds in dollars, and investors from Great Britain (43%) and European countries (24%) in soums.

The proceeds from the issuance of international bonds in local currency will be used to finance the Sustainable Development Goals (SDGs). In particular, the funds will be used for the construction of schools, hospitals, water supply, promotion of gender equality policies, etc.