A consortium of banks headed by J.P. Morgan Chase will become the main financial consultant of Uzbekistan in obtaining a sovereign credit rating and issuing of sovereign bonds.
President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On additional measures to diversify sources of external financing.”
The resolution noted that following the results of the selection, a consortium of banks headed by J.P. Morgan Chase was selected as the main financial consultant of Uzbekistan in obtaining a sovereign credit rating and issuing of sovereign bonds.
Uzbek leader instructed the Ministry of Finance to sign agreements with a consortium of banks headed by J.P. Morgan Chase, and following the results of the selection process, with relevant international companies to provide consulting and other services in the process of obtaining the sovereign credit rating of Uzbekistan, issuing and placing sovereign bonds, as well as with rating agencies for obtaining the sovereign credit rating.
The Ministry of Finance of Uzbekistan is the authorized body that carries out all operations for sovereign borrowing, including the coordination of issuance of corporate (bank) debt obligations.
The payment for the services of financial consultants in accordance with contracts is made at the expense of proceeds from the placement of sovereign bonds of the Republic of Uzbekistan.
The fee for the issue and placement of sovereign bonds, as well as fiscal and payment services, listing and transfer services, upon receipt of the sovereign credit rating will be carried out from the reserve fund under the Ministry of Finance.
Funds, coming from the placement of sovereign bonds of Uzbekistan, will be directed primarily to the executive authorities in the field with the subsequent use of these funds for construction (reconstruction, overhaul) of affordable houses, roads, improvement of drinking water supply and sanitation, urban and rural improvement, including within the programs “Obod Qishloq” and “Obod mahalla”, as well as other infrastructure facilities.
