Uzbekistan’s state hydropower producer and developer has announced its intention to list bonds on the London Stock Exchange in the near future.
In line with the strategy established by the President of Uzbekistan for state entities to attract loans from international financial institutions without state guarantees, Uzbekhydroenergo is working closely with Fitch Ratings to obtain its international credit rating.
Uzbekhydroenergo will shortly be the first joint-stock company in Uzbekistan’s energy sector to secure an international credit rating, based on audited IFRS accounts. This will be a significant achievement for Uzbekistan’s hydropower industry, and a proud moment for the nation.
The work with Fitch is part of an overall roadmap for the Company including:
- The transition to, and preparation of financial statements based on IFRS, for the Company and its subsidiaries;
- A valuation of the Company’s properties and enterprises by Grant Thornton;
- An audit of the Company and its subsidiaries’ financial statements by Big Four global accountancy firm, PwC;
- Implementation of ISO 50001 Energy Management Systems – one of the first organisations in Uzbekistan to implement this international standard.
Abdugani Sanginov, chairman of the Board of JSC Uzbekhydroenergo, said: “We have a very clear roadmap for Uzbekhydroenergo’s development, which involves new milestones for Uzbekistan’s energy sector. An international credit rating, a transition to the IFRS accounting standard, implementing ISO 50001, and the intention to list bonds on the London Stock Exchange – sends a very clear signal about Uzbekistan’s commitment to international best practice and building investment grade corporations.”
The transition to IFRS will enable timely implementation of investment projects to construct new hydropower plants, and modernise existing ones, as part of the ‘Project Factory’ initiative.
This initiative, which incorporates more than 30 investment projects and a projected capacity of 907.5MW, worth $1.37 billion is currently underway. By the end of 2020, it is expected that seven projects with an additional capacity of 118.3MW will have been commissioned.
Recently it was announced that a 20-year loan agreement, worth €55.8 million, had been signed with the French Development Agency to finance a series of projects in Uzbekistan’s hydropower sector. The loan agreement complements Uzbekistan’s ambitious national energy strategy to generate a quarter of all electricity from renewable sources by 2030, including 3.8GW of hydro energy.
With the support of international partners, Uzbekistan is making great strides towards achieving its ambitious energy and investment goals.