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On Friday tenth June 2022, Artel Electronics LLC (Artel), Central
Asia’s main electronics and residential equipment producer, turned
the most important 100% privately-owned firm to efficiently place a
company bond on the Tashkent Inventory Change (TSE). The corporate
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 Financial institution of Uzbekistan base
price is at the moment 16%.
The bond issuance is Artel’s first capital markets exercise,
both domestically or internationally. A broad vary of buyers
participated within the elevate, which was oversubscribed.
In its first interplay with the investor group, Artel
showcased its main home market share, fast improve in
export gross sales, and powerful projections for future development. The elevate
will likely be used to replenish the corporate’s working capital.
Sarvar Akhmedov, Head of the Capital Markets Improvement
Division, Ministry of Finance of the Republic of Uzbekistan,
stated: “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 count on that different giant gamers will quickly contemplate
the TSE as a lovely discussion board to boost capital, which can additional
develop each their companies and our nation.”
Shokhruh Ruzikulov, CEO, Artel Electronics LLC, added: “We’re
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 gives us the
alternative to display Artel’s sturdy fundamentals and powerful
development prospects. Interacting efficiently with the investor
group is an affirmation of our exhausting work in consolidating our
companies and aligning with worldwide greatest observe 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 chance to entry new types of
financing. This transformation has been facilitated by the Group’s
2020 consolidation beneath the guardian firm, Artel Electronics LLC.
Complete 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 firms beneath
holding teams. This has allowed them to introduce worldwide
requirements of company governance and accounting practices, and
supplied 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 Funding Group acted as lead supervisor for the
transaction.
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