Fitch Assigns Rating to Aloqabank Eurobond Issue

Tashkent, Uzbekistan (UzDaily.com) — Fitch Ratings assigned expected credit ratings to a planned US dollar-denominated eurobond issue by Uzbekistan’s Aloqabank, the agency said on 11 May 2026.

The expected long-term ratings were set at “BB(EXP)” and “B(xgs)(EXP)”. Fitch noted that final ratings will depend on the submission of final documentation consistent with previously disclosed issuer information.

According to preliminary terms, Aloqabank’s eurobonds will be issued in US dollars with a fixed coupon rate. The securities will be senior unsecured obligations, ranking equally with the bank’s other similar liabilities.

Fitch said the “BB(EXP)” rating reflects moderate expectations of potential support from the government of Uzbekistan.

This assessment is based on the state’s ownership stake in the bank, its history of capital and financial support, and Aloqabank’s role as an agent institution of the government in preferential lending programs, including support for young entrepreneurs. Another factor cited is the relatively low cost of potential support compared with state reserves.

The agency added that the rating excluding government support corresponds to the bank’s Viability Rating at “b”, reflecting its standalone financial profile.

The eurobond documentation includes financial covenants linked to capital adequacy requirements and restrictions on dividend payments.

Investor protection mechanisms are also included, such as a put option allowing bondholders to demand early repayment if state control over the bank is lost, unless control is transferred to an entity with a rating not lower than Uzbekistan’s sovereign level. The issuer also retains a call option allowing early redemption of the bonds.

Fitch said the planned issuance is viewed as a tool for attracting external financing while maintaining a significant state role in the bank’s corporate and financial structure, which underpins the assigned credit assessment.