BAKU, Azerbaijan, June 11. Uzbekistan has
registered its first-ever mortgage-backed bond issuance, marking a
significant step in the development of the country's capital
markets and housing finance sector.
This was reflected in a statement by Uzbekistan's National
Agency for Perspective Projects (NAPP).
According to the agency, the inaugural issuance, valued at 40.5
billion soms ($3.3 million), was registered under a regulatory
framework designed to support the introduction of new financial
instruments.
The information indicates that the bonds will be issued by UMRC
SPV, a special-purpose subsidiary of the Uzbek Mortgage Refinancing
Company (MRC) established in April 2025. The issuance is backed by
a pool of mortgage assets and guaranteed by the Mortgage
Refinancing Company.
''Under the offering, 40.5 million bonds with a nominal value of
100 soms each will be issued. The proceeds will be used to finance
and refinance mortgage loans.
Meanwhile, the prospectus was registered under a temporary
framework governing mortgage bond circulation, adopted in November
2025 as part of a regulatory sandbox regime. The framework sets out
rules for the issuance and trading of mortgage-backed securities,
as well as requirements related to underlying mortgage
collateral.
According to NAPP, the development of a mortgage bond market
will help transform mortgage assets into tradable financial
instruments, create new channels for attracting long-term funding,
and support the growth of both the capital market and the housing
sector.
The launch follows several years of preparation. Uzbekistan has
been exploring the introduction of mortgage-backed securities since
2021, with efforts focused on building a legal framework for
mortgage securitization and expanding access to long-term financing
for residential construction.
The issuance represents an important milestone in the
modernization of Uzbekistan’s financial system, as authorities seek
to diversify funding sources and deepen the domestic capital
market.
