TBC Bank Uzbekistan (TBC UZ), the country’s largest digital bank, announces the successful placement of its second bond issue, raising $10 million equivalent through a two-year bond denominated in Uzbek soums. The bonds are set to be listed on the Republican Stock Exchange Toshkent (UZSE). This milestone further underscores the impressive growth momentum of TBC UZ and highlights its commitment to supporting the country’s financial sector.
The 128-billion-soum bond, with a 24% yield, is the largest corporate bond ever issued by a digital bank in Uzbekistan, and one of the largest bonds issued by any company on the country’s local market to date. The transaction was jointly facilitated by TBC Capital and Avesta Investment Group. Proceeds from the debt issuance will help to further accelerate TBC’s continued profitable growth in the quickly developing market of Uzbekistan, Central Asia’s most populous nation.
This second bond issuance, more than triple the size of TBC UZ’s inaugural bond, reflects the robust investor confidence in the digital bank’s growth strategy and market leadership. TBC Uzbekistan, which is part of the London-listed TBC Bank Group PLC, has 17 million unique registered users and encompasses TBC Bank Uzbekistan, the Payme digital payments app, and the Payme Nasiya instalment credit business. In the first nine months of 2024, TBC Uzbekistan demonstrated remarkable growth, with its loan book expanding by 99% year-on-year to $460 million and total operating income surging 94% to $102 million.
Nika Kurdiani, CEO of TBC Group operations in Uzbekistan, commented:
“This bond issuance is a testament to the strong trust and confidence investors have in TBC Uzbekistan’s exceptional performance, innovative vision, and ability to unlock the vast potential of this vibrant market. We remain deeply committed to driving innovation that makes financial services simpler and more accessible for our customers. As we continue to scale rapidly and profitably, diversifying our funding sources and contributing to the economic development of Uzbekistan as a whole are at the core of our strategy.”
The successful execution of this transaction was driven by the collaborative efforts of TBC Capital and Avesta Investment Group, whose expertise in capital markets played a pivotal role in the bond issuance. Their strategic guidance and seamless execution ensured the transaction was completed efficiently and met the expectations of all stakeholders.
The bond was supported by leading institutional investors, with Abu Dhabi Uzbek Investment (ADUI) acquiring 70% of the issue and Azerbaijan Uzbek Investment Company (AUIC) taking the remaining 30%. Both ADUI and AUIC are major quasi-government investment funds, backed by the Abu Dhabi Fund for Development, the Ministry of Economy of Azerbaijan, and Uzbekistan’s Fund for Reconstruction and Development.
In addition to the bond issuance, 2024 has been a record-breaking year for TBC UZ, with $75 million in new equity funding and $105 million in wholesale financing secured. These funds have bolstered the bank’s loan portfolio and diversified its funding sources to support its rapid growth. Key funding partners include a $40 million loan from FMO, $20 million in credit lines from responsAbility Investments AG, $25 million in debt financing from BlueOrchard, and $10 million loans from both the European Bank for Reconstruction and Development (EBRD) and Global Gender-Smart Fund (GGSF) via Triple Jump.
Sarvar Khamidov, CEO of Abu Dhabi Uzbek Investment, commented:
“We are honored to contribute to this landmark bond issuance by TBC Bank Uzbekistan, underscoring ADUI’s confidence in Uzbekistan’s dynamic economic growth and the robust development of its financial sector. This investment highlights TBC Uzbekistan’s leadership as the country’s premier digital bank and its strategic role in driving innovation and inclusion in the financial landscape.
By participating in this milestone issuance, ADUI reaffirms its dedication to accelerating Uzbekistan’s economic diversification and fostering sustainable, digitally driven financial ecosystems that empower businesses and enhance the lives of individuals across the country.”
Nazim Hajiyev, CEO of Azerbaijan Uzbek Investment Company, commented:
“The issuance of bonds by TBC Uzbekistan and their acquisition by AUIC marks a significant milestone in the development of the region’s financial market. This transaction reflects the growing interest in investment opportunities in Uzbekistan and underscores international investors’ confidence in the stability and potential of the country’s economy.
AUIC is committed to supporting companies that drive the growth of strategically important sectors, such as banking and financial technologies. We are confident that this bond issuance will strengthen TBC Uzbekistan’s financial position and enable the company to implement its expansion and innovation plans, ultimately benefiting businesses and consumers across the region.
This partnership highlights our dedication to working with companies focused on sustainable growth and opens new opportunities for long-term investments in emerging markets.”
About TBC Bank Group PLC
TBC Bank Group’s mission is to make people’s lives easier by providing digitally led financial services to retail and corporate customers. TBC Bank Group PLC is a public limited company registered in England and Wales and is the parent company of TBC Bank Georgia and TBC Uzbekistan.
TBC Georgia, together with its subsidiaries, is the leading financial services group in Georgia, with a total market share of 38.7% of customer loans and 38.4% of customer deposits as of 30 September 2024, according to data published by the National Bank of Georgia.
TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of the FTSE 250 Index. It is also a member of the FTSE4Good Index Series and the MSCI United Kingdom Small Cap Index.
About TBC Uzbekistan
TBC Uzbekistan is the leading digital banking ecosystem in Central Asia and part of London-listed TBC Bank Group.
TBC Uzbekistan’s success is driven by its purpose-built tech stack, experienced international team and a consumer lending-led product strategy, supported by its first-mover advantage in Central Asia’s largest nation by population. The company continues to expand its innovative, best-in-class product mix, leveraging low retail banking penetration and a rising appetite for modern financial services among the country’s young, growing, and digitally savvy population.
TBC Uzbekistan comprises three high-growth fintech businesses operating in Uzbekistan: TBC UZ, a mobile-only bank; Payme, a digital payments app for individuals and small businesses; and Payme Nasiya (Payme Instalments), a fast-growing instalment credit business.
TBC Uzbekistan reached profitability 2 years after launch – a record time-to-profit among global digital banks, and has since scaled its user base to 17 million unique registered users. In 9M24, the company recorded a net profit of USD 27 million, with its loan and deposit books up 99% and 66% YoY respectively.
