Organised by Global Banking & Markets (GBM), “Bonds, Loans & ESG Capital Markets CEE, CIS & Türkiye 2024” conference took place on November 19-20, 2024 in Istanbul bringing together over 600 participants, including government officials, corporate leaders, investors, and financial experts. Featuring 70+ speakers, the event focused on financing challenges, ESG integration, and regional capital market trends.

This premier event is part of an ecosystem that streamlines in-person meetings to drive transactions in complex markets. Since its inception in 2010, GBM has developed deep expertise across emerging markets, including CIS, CEE, Africa, and the Middle East. Their events are known for reducing the cost, inefficiency, and risk associated with complex, multi-party transactions, convening over 10,000 deal practitioners annually.

Source: GBM

Finasia Capital’s Managing Director & Co-Founder Odilbek Isakov joined the stage as a panelist to discuss Uzbekistan's evolving role in the region's financial landscape, underscoring the nation's transformational journey and emergence as a focal point in CIS capital markets.

Uzbekistan’s Ascent in the CIS Capital Markets

A key highlight of the conference was the panel discussion titled "How and why has Uzbekistan become the focal point of the CIS’s capital markets?". During the session, panelists, including Mr. Isakov, examined the pivotal factors driving Uzbekistan’s rise as a regional leader in accessing international capital markets. Key discussion points included:

1. Market reforms, macroeconomic stability and strong growth prospects underpins sovereign’s access to capital.
   Mr. Isakov detailed the comprehensive reforms Uzbekistan has undertaken, which have created an investor-friendly climate and boosted confidence in the country’s capital markets.

   Moreover, macro-economic stability and high economic and demographic growth as well as low debt supported the country’s debut issuance of USD1bn in February 2019.

2. SOE transformation and modernisation triggered corporate issuances.
   Mr. Isakov mentioned SQB, 2nd largest lender, followed the sovereign’s footsteps into capital markets having issued USD300m 9 months later in November 2019. Prior to this transaction, SQB had worked with IFC to transform itself from a government vehicle to a commercially focused entity. Ipoteka Bank, NBU, UzAuto, UNG, Agrobank and NMMC have issued their debut bonds since then taking the total capital raised in international capital markets to over USD10bn.
3. Setting a Regional Precedent The discussion underscored Uzbekistan's wider role within the CIS. Its proactive economic initiatives have helped integrate Central Asian countries aspiring to develop robust economic and trade ties.
4. Ratings upgrade With strong economic growth, including GDP per capital doubling since 2018 as well as significant improvements in governance indicators, Uzbekistan is ready for ratings upgrade by Rating Agencies.

Opportunities in IPOs and Ratings Upgrades

The panel delved into Uzbekistan’s bold plans to unlock capital through the initial public offerings (IPOs) of major state-owned enterprises in local and foreign stock exchanges. These IPOs are seen as pivotal in deepening the country’s equity capital markets, broadening the investor base, and increasing transparency and accountability within these organizations.

Mr. Isakov highlighted those key industries such as mining, hydro energy and telecommunications are already being prepared for external public offerings together with recently established National Investment Fund representing shares of 17 state-owned entities and banks, marking a significant step in integrating Uzbekistan into the global capital markets ecosystem.

The panellists once more stressed that the success of these IPOs hinges on Uzbekistan achieving a credit ratings upgrade from leading global rating agencies. A higher sovereign rating would signal reduced risk to international investors, thereby improving market perception and reducing borrowing costs for both the government and corporate entities. Mr. Isakov noted that the government’s ongoing reforms—such as enhancing fiscal discipline, modernizing regulatory standards, and prioritizing ESG (Environmental, Social, and Governance) considerations—are strategically aligned to meet the criteria for such upgrades.

Beyond facilitating IPOs, a ratings upgrade would also bolster the country’s ability to issue bonds at competitive rates, attract institutional investors, and diversify the sources of capital inflow. Panellists acknowledged that achieving this milestone requires sustained efforts in ensuring macroeconomic stability, strengthening governance frameworks, and building investor trust through consistent performance. Uzbekistan’s commitment to transparency, highlighted by recent financial disclosures and increased engagement with credit rating agencies, was identified as a key driver of future success.

Building Momentum for the Future

Mr. Isakov emphasized that Uzbekistan’s journey is only the continuation of sound policies to unlock the economic potential.

Uzbekistan 2030 Strategy highlights key growth and reform drivers with nominal GDP expectations recently raised to USD200bn from USD160bn achieving c. USD5000 GDP per.

Ful-speed effort to access World Trade Organisation (expected in 2026) is further testament to the country’s leadership’s strategic vision to support the economic competitiveness in Uzbekistan.

The panel resonated with the audience, shedding light on how Uzbekistan’s growth and reform strategies can inspire further integration with global markets.