Tashkent, Uzbekistan (UzDaily.com) — In 2025, the volume of Eurobond placements by banks in the Commonwealth of Independent States (CIS) could approach the record level seen in 2024, according to a forecast by Fitch Ratings.

Banks from Uzbekistan and Kazakhstan are expected to be among the leaders in issuance.

Key drivers of this growth include refinancing needs, favorable economic conditions, and positive investor sentiment.

In 2024, CIS banks issued Eurobonds worth a record US$3.5 billion, significantly surpassing the previous peak of US$1.3 billion in 2020. Despite this surge, the Eurobond market in the region remains relatively small compared to other parts of the world. Further growth in issuance is expected in 2025, with Uzbek banks playing a particularly important role in this process.

According to Fitch, Uzbek banks are set to issue Eurobonds ahead of debt maturities totaling US$0.7 billion this year, although part of this amount was already refinanced in the second half of 2024. The recent issuance of Uzbekistan’s sovereign debt in February 2025 has further supported the growth of Eurobond placements.

External debt in foreign currency remains a key component of Uzbek banks’ financing structure, as reflected in the sector’s high loan-to-deposit ratio, which stood at 173% at the end of 2024, Fitch notes.

Some Uzbek banks are likely to issue Eurobonds for the first time to finance lending growth, given the limited availability of long-term funding in the domestic market and their efforts to diversify funding sources while reducing reliance on state resources.

Additionally, banks are expected to continue issuing bonds denominated in Uzbek soums on international markets, as long as the exchange rate remains relatively stable.