Uzbekneftegaz is considering extending its first eurobond issue in 2027

Extension instead of new borrowings

Uzbekneftegaz is considering the possibility of extending the maturity of its first eurobond issue. This was announced on October 27 at a press conference by Sukhrob Khamraev, first deputy chairman of the board of the state company, reports Spot. According to him, the principal debt on the first issue matures in 2028, and on the second in 2030. The company is considering two options: repay the debt with its own funds or extend the eurobonds for a new term. Negotiations are planned to begin in advance, so that the maturity is extended on terms no worse than the current ones.

What the company explained

Khamraev emphasized that this is not about a new loan: no additional funds beyond these eurobonds will be raised — the matter concerns extending the same amount for different terms. He also said that the company has refinanced almost all loans with high interest rates. The exception is loans of $1 billion raised for the Uzbekistan GTL plant project: they are planned to be refinanced at the end of this year or at the beginning of the next quarter. According to Khamraev, the refinancing will make it possible to remove the state guarantee on these loans, since banks no longer require it thanks to growing investor confidence in the company and its financial capabilities.

Context of previous steps

On September 29, Uzbekneftegaz discussed with J.P. Morgan opportunities to enter international capital markets and issue bonds in the future, but the state company's press service then told Spot that there were no plans to issue new eurobonds at that time. For context on the dynamics of borrowing costs: in May 2025 the company placed eurobonds worth $850 million at 8.75% per annum, whereas for the $700 million issue in November 2021 the rate was 4.75% per annum. Earlier, Spot also wrote that Uzbekneftegaz wanted to refinance loans of $1.1 billion, of which $840 million related to Uzbekistan GTL.