TBC Bank Uzbekistan has issued corporate bonds worth $10 million.

Bonds worth 128 billion soums with a yield of 24% have become the largest corporate bonds ever issued by a digital bank in Uzbekistan, and among the largest bonds issued by any company in the local market.

The transaction was organized in collaboration with TBC Capital and Avesta Investment Group. The funds raised from this issuance will be directed towards accelerating TBC's profitable growth in the rapidly developing market of Uzbekistan – the most populous country in Central Asia.

The second bond issuance, which is more than three times larger than TBC UZ's debut issuance, reflects a high level of investor confidence in the growth strategy and market leadership of the digital bank.

TBC Uzbekistan, part of the London-based TBC Bank Group PLC, serves 17 million unique registered users and includes TBC Bank Uzbekistan, the digital payment app Payme, and the installment business Payme Nasiya. In the first nine months of 2024, TBC Uzbekistan demonstrated significant growth: the loan portfolio increased by 99% year-on-year to $460 million, while total operating income rose by 94% to $102 million.

Nika Kurdiiani, CEO of TBC Group operations in Uzbekistan, noted: “This bond issuance reflects the high trust of investors in the outstanding results of TBC Uzbekistan, its innovative approach, and its ability to unlock the vast potential of this dynamic market. We remain committed to implementing innovations that make financial services simpler and more accessible for our clients. By accelerating our scalable and profitable growth, we pay special attention to diversifying funding sources and contributing to the economic development of Uzbekistan.”

The successful execution of this transaction was made possible by the coordinated efforts of TBC Capital and Avesta Investment Group, whose expertise in the capital markets played a key role in the bond issuance. Their strategic guidance and effective execution allowed the deal to be completed on time and meet the expectations of all stakeholders.

The bonds were supported 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 major quasi-governmental funds backed by the Abu Dhabi Development Fund, the Ministry of Economy of Azerbaijan, and the Reconstruction and Development Fund of Uzbekistan.

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

Sarvar Hamidov, CEO of Abu Dhabi Uzbek Investment, stated: “It is a great honor for us to participate in this landmark bond issuance of TBC Bank Uzbekistan, highlighting ADUI's confidence in the dynamic economic growth of Uzbekistan and the stable development of its financial sector. This investment confirms TBC Uzbekistan's leadership as the largest digital bank in the country and its strategic role in promoting innovation and inclusivity in the financial sector.”

Nazim Gadjiev, CEO of Azerbaijan Uzbek Investment Company, added: “The bond issuance of TBC Uzbekistan and its acquisition by AUIC mark an important milestone in the development of the region's financial market. This transaction reflects the growing interest in investment opportunities in Uzbekistan and confirms international investors' trust in the stability and potential of the country's economy.”

“AUIC aims to support companies that contribute to the growth of strategically important sectors such as banking and financial technology. We are confident that this bond issuance will strengthen TBC Uzbekistan's financial position and enable the company to realize its expansion and innovation plans, benefiting businesses and consumers across the region,” he concluded.