Uzbekistan Emerges as the “Pumping Heart” of CIS Bond Markets
Tashkent, Uzbekistan – August 6, 2025 – Uzbekistan has become one of the most active participants in the Commonwealth of Independent States (CIS) bond markets, supported by stable macroeconomic conditions, structural reforms, and consistent engagement with global capital markets. As noted by Odilbek Isakov, CEO and co-founder of Infrasia Capital, writing for Global Banking Markets, the country’s deepening presence has elevated it to a regional bellwether.
Since the sovereign’s debut Eurobond issuance in 2019—oversubscribed eight times—Uzbekistan has returned regularly with benchmark transactions, including ESG and local-currency (UZS) tranches, even amid a challenging external backdrop of COVID-19, geopolitics, and global monetary tightening.
| Indicator | Details |
|---|---|
| Bond Issuance Volume | +50% in Jan–Jul 2025 to USD 3.7bn (vs. USD 2.5bn in Jan–Jul 2024), incl. new sovereign and corporate issuers |
| Eurobond History | Debut in 2019 (8× oversubscribed); continued sovereign issuance incl. ESG and UZS tranches |
| Macroeconomy | GDP nearly tripled since 2018 to USD 125bn; projected to reach USD 200bn by 2030 |
| Inflation & FX | Inflation now in single digits; expected to fall to the CBU’s 5% target by 2028. UZS broadly stable |
| Credit Momentum | Fitch upgrade recently; other agencies moved to positive outlooks as spreads tighten |
| Investor Coverage | Global banks (Citi, JPMorgan, MUFG, Societe Generale, Standard Chartered, ADCB, RBI) increasing coverage of issuers |
Uzbekistan’s state-owned banks and enterprises have advanced restructuring, strengthening balance sheets and creditworthiness—supporting a shift toward market-based financing. With a young population and substantial infrastructure needs, tapping global capital is a strategic pillar for long-term growth.
Structural Reforms & Market Development
- SOE Transformation: Improved financial performance and credit profiles following restructuring.
- Deeper Global Coverage: International banks are broadening research and distribution for Uzbek credits.
- Active Outreach: More Uzbek participation at major conferences; growing investor roadshows in Tashkent.
“The result is clear – Uzbekistan has become the pumping heart of CIS bond markets. Its credit is improving, while spreads are tightening.”
Looking ahead, the next phase may prove more testing as private sector issuers come to market. A key question is whether investors will embrace corporate credits without implicit sovereign support—and how that could re-price the Uzbek curve, which has thus far been anchored by fundamentals rather than broader EM swings.