Tashkent, Uzbekistan (UzDaily.com) -- The Asian Infrastructure Investment Bank (AIIB) has participated in the private placement of US$100 million, five-year sustainable Eurobonds by JSCB Uzpromstroybank, Uzbekistan’s second largest bank. AIIB invested a total of US$25 million in the issuance.

The funds raised will be used to finance green projects, including those supporting increased energy efficiency, the reduction of greenhouse gas emissions, sustainable construction, water security and financing for small and medium-sized enterprises and women-led initiatives. The issuance is the first Sustainable Bond under Uzpromstroybank’s Sustainable Finance Framework, aligned with the Green and Social Bond Principles of the International Capital Market Association.

AIIB invested in the placement alongside the International Finance Corporation, the German Investment and Development Corporation and the Austrian Development Bank.

In 2019, Uzpromstroybank became Uzbekistan’s first bank to enter the international capital markets, with a US$300 million Eurobond placement on the London Stock Exchange. The August 2023 placement is the Bank’s second placement on an international exchange. 

Participating in the placement is in line with AIIB’s commitment to promote sustainable development and strengthen the financial infrastructure of its members. Uzbekistan is a founding member of the AIIB.  

AIIB’s wider investment portfolio in Uzbekistan includes 13 projects worth more than US$2.4 billion in the fields of energy, infrastructure development, transport and medicine. This includes US$394 million in financing the development of solar fields in Samarkand, Jizzakh and Surkhandarya, which will be implemented by Abu Dhabi Future Energy Company PJSC (Masdar) and multiple projects in the Bukhara region across water supply and sewerage, road network improvement and railway infrastructure development.