The Navoi Mining and Metallurgical Company (NMMC) has reached a historic milestone by successfully pricing its inaugural dual-tranche notes offering, which garnered a record oversubscription of $1 billion.
This significant achievement includes $500 million in 4-year notes with a 6.70% coupon rate and $500 million in 7-year notes at 6.95%.
NMMC’s offering generated the largest order book for an issuer from Uzbekistan since the sovereign debut in 2019, peaking at $5.5 billion, which was over 5.5 times oversubscribed. This marks Uzbekistan’s first corporate issuance in global debt capital markets since November 2021 and stands as one of the largest corporate notes deals from the CIS since July 2020.
Moreover, it is also the biggest issuance from Uzbekistan, following sovereign offerings. Notably, it is the first global debt capital markets issuance from a gold mining company since June 2023 and the first from a non-investment-grade gold mining company since October 2021. The offering achieved the tightest premium to sovereign rates by a quasi-sovereign from Uzbekistan, at 20 basis points for the 4-year tranche and 7.5 basis points for the 7-year tranche.
Prior to this landmark transaction, NMMC obtained its first credit ratings, receiving a standalone credit profile above the sovereign level: bb+ from S&P and bb from Fitch, both capped at the sovereign level of BB-.
On October 4, NMMC announced the transaction amid favorable market conditions and conducted a successful three-day hybrid investor roadshow. This effort engaged over 150 investors globally through one-on-one and group calls, as well as in-person meetings in London.
Eugene Antonov, NMMC’s First Deputy CEO and Chief Transformation Officer, highlighted the unique nature of this notes issue in terms of volume and coupon rates. He noted that the strong investor demand reaffirmed NMMC’s leadership position in the mining sector, emphasizing the transformative changes the company had undergone.
“NMMC is implementing ambitious strategic goals, focused on improving production at existing mines, pursuing new exploration areas, and implementing digitalization across our operations, all with the aim of becoming a truly global mining company,” Antonov stated.
Jakhongir Khasanov, NMMC’s Deputy CEO for Economics and Finance, remarked on the significance of this debut offering. He expressed optimism for a long and fruitful relationship with the global investor community, stating that the interest in NMMC’s Notes offering underscores the company’s financial stability and resilience.
“NMMC remains committed to investing in the future, driving the company’s sustainable growth forward,” Khasanov added.
The net proceeds from this notes offering will be allocated to general corporate purposes, including financing capital expenditures, repaying existing debt, and covering operational expenses. This new issuance will enable NMMC to refinance its debt at more attractive rates and longer tenors while establishing benchmarks for future notes placements. (Trend)