JP Morgan Development Finance Institution has assessed Uzbekistan`s soum denominated Eurobond transaction on November 19, 2020 to qualify as development finance with a high development impact.

The proceeds from the Transaction amounting to UZS 2 trn are anticipated to fund the SDGs associated development projects that will contribute to combat poverty, ensure healthy lives, promote quality education, advance gender equality, ensure access to clean water, promote decent work and economic growth, and foster infrastructure resiliency.

In order to improve the efficiency and transparency of the use of borrowed funds, the annual report on progress of the selected projects will be published on the website by the Ministry of Finance in cooperation with JP Morgan DFI and will be presented to international investors. The report will reflect the impact of the implemented projects on improving the living standards of the population.

Worth to note, it is emphasized by JP Morgan DFI that the Transaction is the first in which the Issuer has claimed it plans to report progress on the development outputs through an annual report published on its website, which may set a precedent for other Sovereign Issuers.

The development projects mentioned above comprise building and reconstructing schools, health institutions, drinking water & sewage pipelines, automobile roads, providing financial assistance to women and families in difficult social situations as well as to women with disabilities, providing preferential loans to women in establishing family and private businesses, offering comprehensive support of motherhood and childhood, specifically financial support for the implementation of tasks to strengthen the institution of the family, reimbursing initial payments of real estate purchases for women who are in difficult social situations and financing the payout in unemployment pensions.

In addition, it is also planned to sign a Memorandum of Understanding between the Ministry of Finance and the United Nations Development Program to monitor the implementation of these development projects.

For reference: JP Morgan DFI is a Development finance structuring agent that assessed the development impact of the Transaction based on its own methodology.

In order to achieve the UN Sustainable Development Goals by 2030, the Resolution of the Cabinet of Ministers of Uzbekistan dated October 20, 2018 No. 841 "On measures to implement national goals and objectives in the field of sustainable development by 2030" was adopted.

Besides, by the Presidential Decree dated January 17, 2019 No. UP-5635, the SDGs was included as one of 24 priority international ratings and indices.

Source: Ministry of Finance of the Republic of Uzbekistan