October 11, 2024 – Navoi Mining and Metallurgical Company (NMMC) announced the successful pricing of its inaugural US$1 billion dual-tranche Notes offering. The offering comprises US$500 million in 4-year notes at 6.70% and US$500 million in 7-year notes at 6.95%.
This landmark transaction represents several key achievements:
- Largest order book for an issuer from Uzbekistan since the sovereign debut in 2019: The offering peaked at US$5.5 billion, representing an oversubscription of more than 5.5 times. This demonstrates strong investor confidence in NMMC and its future prospects.
- Significant issuance size: This is one of the largest corporate Notes deals from the CIS since July 2020 and the largest ever from Uzbekistan after the sovereign.
- First in the sector: This marks the first global debt capital markets issuance from a gold mining company since June 2023 and the first for a non-investment grade gold mining company since October 2021.
- Tightest premium to sovereign: NMMC achieved a premium of only 20bps and 7.5bps on the 4-year and 7-year tranches, respectively, the tightest achieved by a quasi-sovereign from Uzbekistan.
Prior to the transaction, NMMC obtained its first-ever credit ratings, with its standalone credit profile confirmed at a level above sovereign: bb+ by S&P and bb by Fitch, both capped at the sovereign level of BB-.
The offering was announced on October 4th, followed by a successful three-day hybrid investor roadshow reaching over 150 investors globally.
“This Notes issue is a unique transaction, both in terms of volume and coupon rate,” said Eugene Antonov, NMMC First Deputy CEO and Chief Transformation Officer. “Strong investor demand reaffirms NMMC’s leading position in the mining industry and culminates years of transformative changes. We are pursuing ambitious goals to become a truly global mining company and will continue delivering returns for our investors.”
Jakhongir Khasanov, Deputy General Director and Chief Financial Officer, added, “This milestone signifies the beginning of a long and fruitful relationship with the global investor community. The strong interest in our Notes offering highlights NMMC’s financial stability and resilience. We remain committed to investing in the future and driving sustainable growth.”
NMMC intends to use the net proceeds for general corporate purposes, including capital expenditure, debt repayment, working capital, and operational expenses. This issuance allows NMMC to refinance existing debt at more attractive rates and longer tenors while establishing benchmarks for future Notes placements.
About NMMC
Navoi Mining and Metallurgical Company is a leading mining company in Uzbekistan, engaged in the exploration, extraction, and processing of gold, uranium, and other minerals. NMMC operates the world-renowned Muruntau gold mine, one of the largest gold mines globally.
