London (UK), Tashkent (Uzbekistan) - October 7, 2024 – JSCB Agrobank, with technical support from the Global Green Growth Institute (GGGI), has issued an internationally verified Green Bond on the London Stock Exchange. The value of the issuance is equivalent to USD 455 million, of which USD 400 million are in a five-year bond alongside UZS 700 billion in a two-year tranche (USD 55 million). This is the first Agrobank Green Eurobond and had an oversubscription of USD 1.1 billion, reflecting the growing international confidence in Uzbekistan’s capital markets and Agrobank’s potential.
GGGI is pleased to have provided technical advice and expertise to Agrobank for the development of the Green Finance Framework to align with the ICMA Green Bond Principles 2021 (GBP); it is also aligned with the Green Loan Principles 2023 (GLP) and, LSTA, and APLMA. The Use of Proceeds marked under the framework will be used primarily for renewable energy, clean transportation and climate change adaptation with 80% of the bond targeting Climate Smart Agriculture activities in Uzbekistan. A second-party opinion from Sustainable Fitch Inc. was secured with an excellent rating on the Green Finance Framework. The Framework and SPO were used for investment roadshows in the UK and USA and for addressing investors’ queries.
GGGI offered valuable technical advice and expertise to Agrobank as a Green Structuring Advisor, developing the Green Finance Framework, securing an excellent SPO, and participating in the 65+ meetings and roadshows addressing investors’ ESG queries. Additionally, GGGI will continue to engage with Agrobank for the allocation and impact reporting on an aggregate basis post-issuance.
This transaction was enabled through the support of the Korea International Cooperation Agency (KOICA)-funded ‘Green Rehabilitation Investment Project for Karakalpakstan Republic to address impacts of the Aral Sea crisis’ (Aral Sea GRIP)’, endorsed by the Ministry of Ecology, Environmental Protection and Climate Change (MoEEPCC), and the assistance of the government of the Grand Duchy of Luxembourg through the Global Trust Fund on Sustainable Finance Instruments (GTF).