On September 25, 2024, Agrobank, Uzbekistan's third-largest bank, achieved a major milestone by successfully issuing its debut Eurobond. Demonstrating strategic foresight and careful planning, Agrobank secured an impressive $400 million 9.25% bond, maturing in October 2029, alongside a local currency tranche worth UZS700 billion ($55 million).
The issuance was met with overwhelming demand, resulting in an oversubscribed order book exceeding $1 billion, reflecting the growing international confidence in Uzbekistan’s capital markets and Agrobank's bright future.

A Collaborative Effort: Finasia Capital’s Role

Finasia Capital is proud to have served as the financial advisor to Agrobank from the early stages of the project and carried out extensive work with the Agrobank team.

In particular, we comprehensibly analysed Agrobank’s financial situation and needs, and for the first time in Uzbekistan’s history, applied the practice of mandating banks for loan and bond transactions. Syndicated loan, expected to close by the end of October 2024.

We proudly collaborated with top-tier investment banks, including Citigroup, Société Générale, Standard Chartered Bank, MUFG, ICBC, and Mashreqbank, selected through a competitive process to manage the Eurobond transaction. This strategic selection aimed to attract a diverse range of international investors from the US, Europe, the UK, Southeast Asia, and the Middle East.

Finasia Capital’s commitment to maximizing investor reach was evident in our meticulous structuring of the transaction. Despite a short preparation timeline of just 2.5 months, the deal was structured at in the “Reg S/144A” format and successfully placed ensuring direct participation from US investors.

This strategy has paid off with over USD1bn demand – highest ever for Uzbek financial institution transactions.

Additionally, Finasia Capital participated in the development of Agrobank’s “Green Finance Framework” (the Framework), adhering to international standards and “ICMA” principles, and secured second party opinion from Sustainable Fitch with “Excellent” alignment, allowing the issuance of “Green” bonds. Another key feature of the Framework is that Syndicated Loan will also be aligned with green principles allowing green/ESG lenders participating in the loan.

Throughout the preparation stage, Financial Capital team provided Agrobank with close support, coordinating all participants and preparing essential documents, analytical materials, investor presentations and negotiating with key stakeholders in the project.

Additionally, Finasia Capital actively participated in marketing events, such as non-deal and deal roadshows, and a Global Investor Call (the GIC) to showcase Agrobank’s investment appeal. Initial non-deal roadshow t took place from August 2-6, 2024 in UAE which allowed Agrobank management team to secure strong interest from the Middle East even before the announcement.

Moreover, following the GIC on 20 September, several 1-1 and small group meetings helped expand Agrobank’s outreach to global investors, including those in Europe, Asia and West Coast of the US.

Physical roadshow took place in New York on 23 September and in London on 24 September which allowed to receive anchor orders and pricing feedback crucial to the transaction.

Throughout the marketing process, Finasia Capital provided significant input covering macro-economic and policy related sections thanks to previous government position of Finasia Capital’s Managing Director.

Moreover, ahead of the announcement and throughout the bookbuilding and execution process, Finasia Capital team supported Agrobank in decision-making process to get the highest demand among Uzbek banks in global capital markets.

To attract a broad investor base, Agrobank’s USD300 million, 5-year corporate bonds were announced with a high 9% initial pricing thoughts (9.75-9.9%). By the time the US market opened, the order book had reached $650 million. Demand surged to $1.1 billion, and on the back of reverse enquiry, a new tranche - 2-year UZS Eurobond was announced at 22% area.

Adhering the right strategy paid off – Agrobank managed to tighten the pricing for a 5-year USD corporate bonds twice, maintaining a final order book of USD1 billion.

The USD bonds were successfully placed with a 9.50% reoffer yield and a 9.25% coupon. High investor demand allowed Agrobank to increase the bond size from USD300 million to USD400 million.

Additionally, the bank’s 2-year UZS corporate bonds worth 700 billion soums were successfully issued with a 21.75% coupon rate.

It is worth noting that this transaction not only secured additional financial resources for Agrobank but also opened strategically important opportunities for the bank, as such establishing long-term business relationships with leading international investment banks, enabling to discover new markets for financial resources and expanding investor coverage in the international financial market, and diversifying bank`s portfolio by the types and currencies of financial instruments being raised.

Press coverage of Agrobank transaction was very positive. Highly reputable GlobalCapital IFR and BondRadar reported about the positive experience of Agrobank on global markets.