On Friday tenth June 2022, Artel Electronics LLC (Artel), Central
Asia’s main electronics and residential equipment producer, grew to become
the most important 100% privately-owned firm to efficiently place a
company bond on the Tashkent Stock Exchange (TSE). The firm
positioned a debut three-tranche bond providing of UZS 30bln (US$2.71m),
with maturities of 12-18 months, a coupon rate of interest of 21 –
22.5%, and quarterly funds. The Central Bank of Uzbekistan base
charge is presently 16%.
The bond issuance is Artel’s first capital markets exercise,
both domestically or internationally. A broad vary of buyers
participated within the increase, which was oversubscribed.
In its first interplay with the investor neighborhood, Artel
showcased its main home market share, speedy improve in
export gross sales, and powerful projections for future progress. The increase
can be used to replenish the corporate’s working capital.
Sarvar Akhmedov, Head of the Capital Markets Development
Department, Ministry of Finance of the Republic of Uzbekistan,
mentioned: “Artel’s issuance on the TSE is the newest encouraging signal
of the event of Uzbekistan’s capital markets. The Ministry of
Finance is dedicated to growing confidence within the home
markets and creating the situations for an more and more wholesome and
liquid TSE. We anticipate that different giant gamers will quickly take into account
the TSE as a beautiful discussion board to lift capital, which can additional
develop each their companies and our nation.”
Shokhruh Ruzikulov, CEO, Artel Electronics LLC, added: “We are
very proud to have issued our first bond on the home market.
The TSE, with a pool of regionally centered buyers, is the
pure discussion board for our first bond issuance. It supplies us the
alternative to exhibit Artel’s sturdy fundamentals and powerful
progress prospects. Interacting efficiently with the investor
neighborhood is an affirmation of our exhausting work in consolidating our
companies and aligning with worldwide greatest follow in ESG and
monetary reporting.”
The issuance is Artel’s pure subsequent step as the corporate
continues to align with worldwide requirements throughout its
operations, offering a possibility to entry new types of
financing. This transformation has been facilitated by the Group’s
2020 consolidation below the guardian firm, Artel Electronics LLC.
Total consolidated belongings exceed UZS 3.7trn (US$330m).
Following intensive tax reforms in Uzbekistan in 2019 that
lifted restrictions on the dimensions of companies, non-public entities
have been capable of consolidate their subsidiary corporations below
holding teams. This has allowed them to introduce worldwide
requirements of company governance and accounting practices, and
offered the size to entry extra various types of financing, each
domestically and internationally.
In early 2022, a Presidential decree was issued that launched
tax incentives to encourage funding within the home capital
markets. Artel turns into the most important non-public firm to situation a bond
on the TSE.
Avesta Investment Group acted as lead supervisor for the
transaction.
