BAKU, Azerbaijan, August 15. Uzbekistan's Asia
Alliance Bank plans to issue $20 million in foreign-currency bonds,
adding to a growing number of Uzbek financial institutions seeking
dollar-denominated funding from investors.


This was announced in a statement published by KAP DEPO
following a decision by the bank's Supervisory Board, which was
posted on OpenInfo on August 10


The bonds will be offered through an open subscription and will
carry a 7% annual coupon with a three-year maturity. Each bond will
have a face value of $100, with coupon payments made quarterly.


The placement is scheduled to begin on the 15th calendar day
after the notice of the bonds' state registration is published on
OpenInfo.


Trend's analysis
shows that Asia Alliance Bank's planned issue represents a
relatively lower-cost source of foreign-currency funding compared
with recent offerings announced by Uzbek microfinance institutions.
The bank's 7% coupon is 4.5 percentage points below the rate
planned by Agat Credit, despite the longer three-year maturity.







Trend's calculations show that the planned $20 million issue is
twice the size of Agat Credit's proposed $10 million
foreign-currency bond offering. Agat Credit plans to issue two-year
bonds with an 11.5% annual coupon, meaning investors would receive
a significantly higher nominal return in exchange for exposure to a
shorter-maturity microfinance issuer.


The two planned offerings also highlight differences in funding
costs across Uzbekistan's financial sector. Banks generally have
broader access to funding and a lower perceived credit risk than
microfinance institutions, allowing them to raise foreign-currency
financing at comparatively lower coupon rates.


In Trend's
assessment, the planned bond issue indicates that Uzbek banks and
non-bank financial institutions are increasingly using
capital-market instruments to diversify funding sources beyond
traditional bank financing. For Asia Alliance Bank, the three-year
maturity could provide longer-term foreign-currency funding, while
the quarterly coupon structure may broaden the appeal of the
securities to income-focused investors.