Samarkand Bonds & Uzbekistan Capital Markets Guide 2026

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1. What Are Samarkand Bonds?

Samarkand bonds are Uzbek soum-denominated bonds issued by the International Finance Corporation (IFC) on the London Stock Exchange. The first issuance took place on May 18, 2018, raising 80 billion UZS (~$10 million USD) with a 2-year maturity and a 9.5% coupon rate.

The name “Samarkand” was chosen to highlight the historical and cultural significance of the ancient Silk Road city, symbolizing Uzbekistan’s re-emergence as a key player in global financial markets. These bonds were the first-ever securities denominated in Uzbek soum to be listed on an international exchange.

In total, IFC issued three Samarkand bond issuances by June 2018, with the proceeds used to finance lending to micro, small and medium-sized enterprises (MSMEs) through Hamkorbank, one of Uzbekistan’s leading private banks.

Definition and Key Features

• Issuer: International Finance Corporation (IFC), World Bank Group
• Currency: Uzbek Soum (UZS)
• Total Issuance: 80 billion UZS (~$10 million USD)
• Maturity: 2 years
• Coupon Rate: 9.5% per annum
• Listing: London Stock Exchange
• First Issuance Date: May 18, 2018
• Number of Issues: 3 (as of June 2018)
• Use of Proceeds: MSME lending through Hamkorbank

Why “Samarkand” Bonds?

The choice of the name “Samarkand” was intentional. Samarkand, one of the oldest continuously inhabited cities in Central Asia, was a crucial hub on the ancient Silk Road. The name symbolizes Uzbekistan’s ambition to re-establish itself as a gateway between East and West — this time, in the world of international finance rather than trade in silk and spices.

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2. Uzbekistan’s Capital Markets: An Overview

Uzbekistan’s capital markets have undergone a remarkable transformation since 2017, following the death of long-time president Islam Karimov. The country has moved from a closed, centrally planned economy toward greater openness and integration with global financial markets.

History and Development

The Uzbek capital market was traditionally small and illiquid, dominated by state-owned enterprises (SOEs) with limited freefloat. The market capitalization of the Tashkent Stock Exchange is close to $3 billion, but the freefloat is less than $300 million, meaning that most shares are held by the state or insiders.

The Capital Markets Development Agency (CMDA), led by Atabek Nazirov since January 2019, has been the driving force behind market reform. The agency has focused on restructuring state-owned enterprises, increasing freefloat, and attracting foreign portfolio investors.

The Tashkent Stock Exchange

The Tashkent Stock Exchange is the primary securities exchange in Uzbekistan. While its market capitalization is close to $3 billion, the freefloat remains below $300 million. The CMDA aims to increase the minimum freefloat for state-owned enterprises to 20%, which would significantly boost liquidity and attract more foreign investors.

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3. Uzbekistan’s Eurobond Success (2019)

In February 2019, Uzbekistan achieved a major milestone by issuing its first-ever sovereign Eurobonds. The issuance raised $1 billion, with a 5-year tranche at 4.7% and a 10-year tranche at 5.3%. The sale drew $3.8 billion in orders, a clear sign of strong international investor appetite for Uzbek assets.

The Eurobond success was a turning point for Uzbekistan’s integration into global capital markets. It demonstrated that the country’s reforms were being noticed and trusted by international investors, paving the way for future issuances by both the sovereign and corporate entities.

The proceeds from the Eurobond were used to finance budget expenditures and support economic reforms, including infrastructure development, social programs, and further market liberalization.

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4. Types of Bonds in Uzbekistan

Uzbekistan’s bond market has diversified significantly since 2018. The table below outlines the main types of bonds available in the Uzbek market.

📌 Uzbekistan’s bond market has expanded significantly since 2018, with new instruments like covered bonds being introduced in 2026.

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5. Uzbekistan Capital Markets Reforms (2025–2026)

In 2025–2026, Uzbekistan has accelerated its capital market reforms with several landmark initiatives designed to attract international capital and develop modern financial infrastructure.

New Capital Market Law

The new Capital Market Law, consisting of 16 chapters and 123 articles, was introduced to regulate the market based on modern principles. The law protects investor rights, introduces new financial instruments, and establishes a regulatory framework aligned with international standards.

Key provisions of the new law include:

• Stronger protection for minority shareholders
• Enhanced disclosure requirements for listed companies
• Introduction of new financial instruments
• Streamlined procedures for foreign investment
• Improved corporate governance standards

Tashkent International Financial Center (TIFC)

The Tashkent International Financial Center (TIFC) was established in July 2026 through a constitutional law. The TIFC is designed to improve the investment climate, attract international capital, and develop modern financial infrastructure in Uzbekistan. It aims to become a regional financial hub serving Central Asia and beyond.

New Financial Instruments

In 2026, Uzbekistan authorized banks to issue covered bonds and mortgage-backed securities for the first time. These instruments allow banks to attract long-term financing, support the development of the mortgage market, and expand access to financial services for Uzbek citizens.

Digitalization

Uzbekistan is also embracing financial technology. The government is implementing AI technologies and a new platform for trading international financial instruments, making it easier for both domestic and foreign investors to participate in the market.

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6. Samarkand Bonds vs Other Bond Types

The table below compares Samarkand bonds with other major bond types available in the Uzbek market.

📌 Samarkand bonds were a groundbreaking instrument as the first UZS-denominated securities listed on an international exchange.

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7. Key Players in Uzbekistan’s Capital Markets

The development of Uzbekistan’s capital markets has been driven by a number of key individuals and institutions. The table below outlines the main players and their contributions.

📌 The CMDA has been the primary driver of capital market reforms since 2019.

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8. How to Invest in Uzbekistan’s Capital Markets

For international investors looking to gain exposure to Uzbekistan’s growing capital markets, there are several pathways to consider.

Direct Investment in Bonds

International investors can invest directly in Uzbek sovereign Eurobonds, which are listed on the London Stock Exchange and accessible through major international brokerages. These bonds offer exposure to Uzbekistan’s sovereign credit profile with the liquidity of an international listing.

Domestic Market Access

Foreign investors can also access the Tashkent Stock Exchange, though this requires working with local brokers and navigating regulatory requirements. The new Capital Market Law has streamlined these processes, making it easier for foreign investors to participate.

Investment Funds

Several international investment funds have launched dedicated Uzbekistan-focused vehicles, offering diversified exposure to the country’s equity and fixed-income markets. These funds provide a more accessible entry point for smaller investors.

Key Considerations for Investors

• Currency Risk: Investments in UZS-denominated instruments carry currency risk. The soum has been relatively stable but can be volatile.
• Regulatory Environment: Uzbekistan has made significant progress in improving its investment climate, but investors should stay informed about regulatory changes.
• Market Liquidity: The Uzbek market is still developing, and liquidity can be limited compared to more established markets.
• Repatriation: Restrictions on repatriation of profits were lifted in March 2019, making it easier for foreign investors to exit investments.

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9. Frequently Asked Questions

What are Samarkand bonds?

Samarkand bonds are Uzbek soum-denominated bonds issued by the International Finance Corporation (IFC) on the London Stock Exchange. The first issuance was on May 18, 2018, raising 80 billion UZS (~$10 million) with a 2-year maturity and 9.5% coupon rate.

Who issued the Samarkand bonds?

The International Finance Corporation (IFC), a member of the World Bank Group, issued the Samarkand bonds to support MSME lending in Uzbekistan through Hamkorbank.

What was the first Eurobond issuance by Uzbekistan?

Uzbekistan issued its first-ever sovereign Eurobonds in February 2019, raising $1 billion with a 5-year tranche at 4.7% and a 10-year tranche at 5.3%. The sale drew $3.8 billion in orders.

What is the Tashkent Stock Exchange?

The Tashkent Stock Exchange is the primary securities exchange in Uzbekistan, with a market capitalization close to $3 billion. The freefloat is less than $300 million, which the CMDA aims to increase.

What are the recent capital market reforms in Uzbekistan?

In 2025–2026, Uzbekistan introduced a new Capital Market Law (16 chapters, 123 articles), established the Tashkent International Financial Center, and authorized banks to issue covered bonds and mortgage-backed securities.

Can foreign investors invest in Uzbekistan’s capital markets?

Yes. Uzbekistan lifted restrictions on repatriation of profits in March 2019, and the new Capital Market Law aims to further protect investor rights and attract foreign capital.

What is the Capital Markets Development Agency (CMDA)?

The CMDA is Uzbekistan’s regulatory agency responsible for restructuring and developing the country’s capital markets, led by Atabek Nazirov since January 2019.

What is the Tashkent International Financial Center?

The Tashkent International Financial Center (TIFC) is a new financial hub established in 2026 to improve the investment climate, attract international capital, and develop modern financial infrastructure in Uzbekistan.

How large is Uzbekistan’s stock market?

The market capitalization of the Tashkent Stock Exchange is close to $3 billion, but the freefloat is less than $300 million. The CMDA aims to increase the minimum freefloat for state-owned enterprises to 20%.

What are covered bonds and why are they important for Uzbekistan?

Covered bonds are debt securities backed by a pool of assets, such as mortgages. Uzbekistan’s new reforms allow banks to issue them, attracting long-term financing, supporting mortgage market development, and expanding access to financial services.

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