Sidley represented the joint lead managers on the successful offering of US$300 million 9.45% Fixed Rate Resettable Perpetual Additional Tier 1 (AT1) Notes by Uzpromstroybank JSCB (SQB). The AT1 notes were issued in reliance on Regulation S / Rule 144A and listed on the London Stock Exchange.
The proceeds of the offering have been included in SQB’s Tier 1 regulatory capital. The transaction marks a significant milestone in the development of Uzbekistan’s banking sector and highlights SQB’s pioneering role in enhancing the country’s investment profile in the global capital markets.
A first of its kind transaction in Uzbekistan, the capital notes utilized the AT1 framework established by the Central Bank of Uzbekistan (CBU) earlier this year, as well as the country’s new legislation on bank resolution regime.
Sidley advised on all aspects of the transaction, including structuring the terms of the offering and participating in consultations with the CBU on implementing global best practices for AT1 instruments.
The Sidley team was led by partners Vladimir Mikhailovsky and David Stewart, counsel Omar Shafi, with assistance from Tamara Fayed and trainee solicitor Chidiebere Onyeagucha. David Howe represented the trustee and agents on the transaction.
