Tashkent, Uzbekistan – Finasia Capital, a premier corporate finance advisory firm headquartered in London, demonstrated its proven expertise in debt advisory at the Central Bank of Uzbekistan (CBU) on 27th of December 2024. This high-profile event highlighted Finasia Capital’s approach to connect Uzbek firms to global markets.

Key Highlights from the Presentation

1. About Finasia Capital

• A corporate finance advisory firm based in London specializing in capital markets and debt advisory services.
• Founded by experts with over 30 years of combined experience in investment banking and corporate finance in emerging markets.
• Provides comprehensive solutions for sovereigns, corporates, and financial institutions, focusing on capital raising, debt restructuring, and ESG financing.

2. Key Achievements and Capabilities

• Global Partnerships: Collaborates with international financial institutions, global investment banks, export credit agencies, and global investors to provide innovative financing solutions.
• Landmark Transactions:
  • Played a key role in all Uzbekistan's sovereign Eurobond issuances.
  • In 2024, advised on multiple transactions, including Conventional Eurobond of the JSC Navoi Mining and Metallurgical Company, Green Eurobond and Multicurrency Syndicated Loan of the JSCB Agrobank, and others.

3. Available Financial Instruments

• For Large and Mid-Sized Banks (asset size is 10-30 trn soums or $0.8-$2.3 bn):
  • Eurobond (private placement and public offering)
  • Syndicated/Club Loan
  • Subordinated Debt
• For Small and Mid-Sized Banks (asset size is 10-30 trn soums or $0.8-$2.3 bn):
  • Bilateral Loans
  • IFI/DFI Loans
  • ECA-backed Loans
  • Partial Credit Guarantee
  • Revolving Credit Facilities (RCFs)
  • Trade Finance Facilities

4. Corporate Eurobond Issuance Process

Pre-Issuance Preparation

• Internal planning: Assessing financing needs and defining transaction volume and use of proceeds.
• Engaging advisors: Appoint financial advisors, underwriters, legal counsel, auditors, and other transaction participants.
• Obtaining a Credit Rating: Acquire or update a credit rating from agencies such as Moody’s, Fitch, or S&P.

Structuring the Transaction

• Transaction structure: Currency, maturity, structure, and format.
• Preparing legal documents: Offering Prospectus, Transaction agreements (e.g., Subscription Agreement, Trust Deed, Agency Agreement, Terms & Conditions), and Green/ESG/SDG Bond Program documentation.

Marketing and Investor Engagement

• Timing the market: Identify the optimal timing for launching the marketing campaign and placing the bonds.
• Preparing investor materials: Develop presentations and analytical materials for potential investors.
• Marketing campaign and roadshow events.

Pricing and Issuance

• Preliminary pricing and order book management: Open the order book and accept investor orders while setting the preliminary price.
• Final pricing and issuance: Finalize the coupon rate and bond price, taking into account investor demand and market conditions; allocate bonds to investors and settle the transactions through clearing systems like Euroclear or Clearstream.
• Listing on the stock exchange: List the bonds on a selected stock exchange (e.g., London Stock Exchange or Vienna Stock Exchange).

Post-Issuance Activities

• Ensuring transparency: Regularly publish updated financial reports and information on the corporate website in compliance with stock exchange requirements.
• Investor relations: Maintain open and consistent communication with investors.
• Monitoring agreements and covenants: Continuously monitor compliance with covenants and agreements reached with investors.

5. ESG Financing

Advocates for sustainability through Environmental, Social, and Governance (ESG) instruments. ESG bond issuance to finance green, social, and governance-focused projects aligns with global trends and Uzbekistan’s sustainability goals.

6. Agrobank Debut Green Eurobond Transaction and Multicurrency Green Syndicated Loan Transaction – Key Highlights

Agrobank’s Experience with Finasia Capital:

Agrobank, Uzbekistan's third-largest bank, shared its success story at the meeting, highlighting its collaboration with Finasia Capital on two landmark transactions:

• Debut Green Eurobond Issuance: On September 25, 2024, Agrobank successfully issued its debut USD400 million Eurobond with a 9.25% coupon, maturing in October 2029. The issuance, accompanied by a local currency tranche worth UZS700 billion ($55 million), was met with overwhelming demand, resulting in an oversubscribed order book exceeding $1 billion. This milestone reflects growing international confidence in Uzbekistan’s financial markets.
• Green Syndicated Loan:  Agrobank also achieved a significant milestone by closing a USD250 million multi-currency green syndicated loan in November 2024. The transaction included USD, EUR, JPY, and CNH tranches and attracted robust demand, with an oversubscribed order book exceeding $375 million. This deal underscores Agrobank’s commitment to sustainable finance and highlights Finasia Capital’s pivotal role in structuring and marketing the transaction.