Navoi Mining and Metallurgical Company (NMMC) announced that it had successfully priced its inaugural $1 billion dual-tranche notes offering, comprised of US$500 million in 4-year notes at 6.7% and $500 million in 7-year notes at 6.95%.
This is the largest orderbook for an issuer from Uzbekistan since the sovereign debut in 2019, peaking at US$5.5 billion (over 5.5x oversubscribed).
The deal is also one of the largest corporate notes deal from the Commonwealth of Independent States since July 2020, and the biggest ever from Uzbekistan after sovereign.
This is the first global debt capital markets issuance from a gold mining company since June 2023 and the first for a non-IG gold mining company since October 2021.
The deal marked the tightest premium to sovereign achieved by a quasi-sovereign from Uzbekistan — 20bps and 7.5bps on the 4-year and 7-year tranches, respectively.
Ahead of the transaction, NMMC obtained the company’s 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-.
“NMMC is implementing ambitious strategic goals, focused on improving production at existing mines, pursuing new exploration areas, and implementing digitalisation across our operations, all with the aim of becoming a truly global mining company,” Eugene Antonov, NMMC first deputy CEO and chief transformation officer, said.
NMMC intends to use net proceeds from the notes offering for general corporate purposes, including but not limited to financing NMMC’s capital expenditure programme, repayment or prepayment of existing debt, general working capital and other operational expenses. The issue will allow NMMC to refinance existing debt at more attractive rates and longer tenors, while also establishing benchmarks for future Notes placements, the statement said.
