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TBC Bank Group has announced the issuance of a USD 200 million bond specifically to support the growth and development of its subsidiary, TBC Uzbekistan.
Key details of the bond include:
* Denomination and Settlement: The bond is denominated in Uzbek sum (UZS) but settled in US dollars (USD), making it a “synthetic bond.” This structure often allows investors to gain exposure to a local currency’s yield while managing foreign exchange risk through USD settlement.
* Coupon Rate: It carries a significant 22% Uzbek sum coupon, reflecting the higher interest rates typically seen in emerging markets and potentially the perceived risk/reward of investing in Uzbek sum-linked assets.
* Tranche Issuance: The bond will be issued in several tranches. The initial tranche provides USD 140 million in funding, with the remaining USD 60 million to be tapped over the next 12 to 18 months.
* Listing: The notes are listed on the Vienna Multilateral Trading Facility (MTF), which is operated by the Vienna Stock Exchange and is a common venue for debt listings that may not require a full regulated market listing.
* Investor Confidence: The announcement highlights significant investor demand, indicating continued confidence in TBC Bank Group’s strategy and increasing interest in the Uzbekistan market.
This bond issuance is part of TBC Bank Group’s broader strategy to accelerate the growth of TBC Uzbekistan’s digital banking ecosystem. The proceeds are intended to expand the product suite, including entering new high-growth segments like SME banking and lending, and to support investments in business development, infrastructure, and talent acquisition. TBC Uzbekistan has shown strong performance, doubling its loan book and revenue year-on-year in Q1 2025 and contributing significantly to the Group’s overall revenue.

Video courtesy of Interactive Brokers

Video courtesy of Interactive Brok ers