SQB on the international capital market — a symbol of trust and progress

In October of this year, JSCB “Industrial and Construction Bank of Uzbekistan” successfully placed USD 300 million in Additional Tier 1 (AT1) international bonds on the London Stock Exchange. This milestone marks an important step toward strengthening the bank’s financial stability, introducing new financial instruments to the global market, and enhancing Uzbekistan’s investment attractiveness.

In recent years, Uzbekistan has implemented large-scale economic and financial reforms, creating favorable conditions for investors and significantly reinforcing the country’s position in the international investment arena. These systemic changes have expanded opportunities for the banking sector to access global financial markets.

The AT1 bonds are among the modern financial instruments used in commercial banking. In line with Basel III international standards, they serve to increase a bank’s Tier 1 regulatory capital. This financial mechanism enables capital growth without government budget participation. The successful issuance also provides an exemplary model for other commercial banks seeking to strengthen their capital adequacy.

During the placement process, offers were received from over 130 investors across 22 countries. The total demand exceeded USD 1.4 billion, which is 4.8 times greater than the planned issuance amount. As a result, the coupon rate was reduced from 9.75–10% to 9.45%. Among the investors were representatives from the United Kingdom (45%), the United States (28%), the United Arab Emirates (8%), Switzerland (6%), and several other countries. Leading global financial institutions — Citibank, J.P. Morgan, Société Générale, Standard Chartered, Raiffeisenbank, and Mashreqbank — acted as joint bookrunners and placement agents.

Following the issuance, the bank’s capital adequacy ratio increased from 15.9% to 19%, while the Tier 1 capital adequacy ratio rose from 11.3% to 14.7%. This improvement will enable the bank to attract an additional USD 2.1 billion in loans and generate approximately USD 80 million in net interest income during 2026–2027. Moreover, the growth of the loan portfolio will support the expansion of financing for manufacturing and infrastructure projects across the country.

The successful placement of the AT1 international bonds not only enhanced the financial capacity of SQB, but also strengthened the reputation of Uzbekistan’s banking system in the global arena. This achievement reflects the practical outcome of the country’s ongoing reforms aimed at building an open, stable, and investment-friendly economic environment.