The procedure for the emission and state registration of the issue of securities has been changed

On 4th November 2020, Director of the Capital Markets Development Agency of the Republic of Uzbekistan Atabek Nazirov signed an order “On amendments and supplements to the Rules for the issue of securities and state registration of issues of equity securities” №2020-14.

The amendments cover the procedure for issuing bonds for an amount exceeding the issuer’s equity capital. Accordingly, in such cases, the issuer must have one of the following third-party collateral for an amount exceeding the amount of bonds:

  • collateral in the form of real estate;
  • cash or funds equivalent ;
  • bank guarantee;
  • insurance policy.

Moreover, emission requires an independent rating assessment and the mandatory engagement of an underwriter.

New amendments also apply to rules for enclosing of auditor’s report. It is mandatory now to enclose  to prospect of bond issue an auditor’s report for the last three years. If the issuer existed for less than three years, then an auditor’s report is submitted for the entire period of existence, but not less than one year.

According to the Order, during the state registration of the emission, the provision of a document confirming the presence of the mortgaged property was replaced by submission of a document confirming the fact of the property pledge.

The information which must be enlisted in a prospect for the issue of securities has also changed. These include:

  • procedure and terms of payment of interest on bonds of the forthcoming issue;
  • specific purposes for using the money received by the issuer from the placement of bonds;
  • the total amount of remuneration (including salaries) and benefits paid to the executive body and the supervisory board of the issuer;
  • large suppliers and customers of the issuer;
  • major transactions with affiliates in the last year;
  • information on the issuer’s investments amounting to 10 and more percent of the book value of the issuer’s assets.


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