Uzbekistan Registers Its First Mortgage Bond Issuance

The National Agency for Perspective Projects has registered the first-ever mortgage bond issuance in the history of Uzbekistan, totaling UZS 40.5 billion.

The issuer is UMRC SPV LLC, and the issuance is backed by a pool of mortgage assets and guaranteed by the Uzbekistan Mortgage Refinancing Company.

Mortgage bonds are issued against a portfolio of already originated mortgage loans. The funds raised through their placement are used to finance and refinance new mortgage loans. This enables banks to manage their capital more efficiently while expanding the availability of mortgage lending.

The inaugural mortgage bond issuance marks an important milestone in the development of Uzbekistan’s capital market, providing investors with access to a new asset class. In many countries, mortgage bonds serve as one of the primary instruments for financing residential mortgage lending.