AIIB participates in USD 100 million sustainable bond issuance – Asia News

The Asian Infrastructure Investment Bank (AIIB) has assisted in the USD 100 million five-year sustainable eurobond private placement by JSCB Uzpromstroybank, the second largest bank in Uzbekistan. In this issue, the AIIB invested a total of USD 25 million.

Funds raised will go to finance green-focused projects, including initiatives to increase energy efficiency, reduce greenhouse gas emissions, encourage sustainable construction, improve water safety, and support small and medium-sized businesses, as well as initiatives led by women.

This issuance represents the first Sustainable Bond under Uzpromstroybank’s Sustainable Financing Framework and is aligned with the International Capital Markets Association’s Green and Social Bond Principles.

The AIIB participated in this placement together with other financial players, such as the International Finance Corporation, the German Investment and Development Corporation and the Austrian Development Bank.

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In 2019, Uzpromstroybank became the first bank in Uzbekistan to access international capital markets by completing a USD 300 million Eurobond placement on the London Stock Exchange.

The placement carried out in August 2023 represents the bank’s second foray into international markets. The AIIB’s participation in this placement is consistent with its commitment to foster sustainable development and strengthen the financial infrastructure of its member countries. Uzbekistan is one of the founding members of the AIIB.

AIIB’s investment portfolio in Uzbekistan is extensive and includes 13 projects totaling more than USD 2.4 billion in areas such as energy, infrastructure development, transportation and healthcare.

Among these projects, an investment of USD 394 million for the development of solar fields in Samarkand, Jizzakh and Surkhandarya stands out, projects that will be executed by Abu Dhabi Future Energy Company PJSC (Masdar). In addition, the AIIB has supported multiple projects in the Bukhara region related to water supply, sewerage, road network improvements and railway infrastructure development.