Opportunities for expanding uzbekistan's participation in the world eurobond market

ВОЗМОЖНОСТИ РАСШИРЕНИЯ УЧАСТИЯ УЗБЕКИСТАНА В МИРОВОМ РЫНКЕ ЕВРООБЛИГАЦИЙ
Аннотация.Текущее состояние рынка капитала в Узбекистане, роль экономики в республике, инвестиции в экономику, изучение прямых аргументов и преимуществ развития системы, внедрение проблемной системы и введение рынок капитала на новый уровень, прояснилось видение быстрого производства. В этих реформах подтверждалась деятельность в нашей стране и роль мирового сообщества. Возможна аналитика долгосрочных вложений субъектов нашей экономики и выход на медународный рынок капитала. Изучены экономические показатели в деятельности хозяйствующих субъектов, осуществляющих трудовой процесс. Анализ рынка теоретической и практической помощи, осуществляемой властями Узбекистана на выходе медуродного капитала. Для перспективы этой деятельности и предложения даны. Три статьи состоят из трекс-частей. Первая часть посвящена истории еврооблигаций, остальные – особенностям выпуска и обращения еврооблигаций.
Ключевые слова: Еврооблигации, инструменты рынка еврооблигаций, инвестиции, инвестиционная привлекательность, международный рынок капитала.
A Eurobond is an international bond denominated in a foreign currency. They are also called "external relations." They are usually divided into categories depending on the issued currency: Eurodollars, Euros, etc. Governments and national and foreign organisations are the issuers of Eurobonds. That is, dealers of Eurobonds.Financial institutions as investors: insurance companies, pension funds, etc. Eurobonds are securities that bring income to the investor at a certain rate and at a certain time. The Eurobond gives the investor the right to receive interest. The interest rate can be fixed or variable. A Eurobond is a debt obligation for the issuer. Eurobonds are short-term, medium-term, and long-term. short-term (up to one year), medium-term (ten to thirty years), and long-term (up to forty years). This type of bond was first issued in Italy and is still active in European countries. These papers have the following characteristics: - they present securities; - they are listed on multiple markets at the same time; - they are granted for a long period of time -- typically 10 to 30 years (up to 40); - the loan currency is foreign to both the issuer and the investor; - a eurobond has a dollar equivalent; - interest on coupons is paid without tax deduction.The main purpose of the Eurobond issuer issuing this bond is to seek alternative financial resources. In addition, it provides many conveniences to the issuer of the Eurobond. Save up to 20% on the cost of raising capital. The issuer can simultaneously issue Eurobonds to the capital markets of several countries. The issuer is subject to fewer obligations.Eurobonds are issued in two different ways. Eurobonds are issued on the stock exchange or placed among certain investors. The first Eurobonds in our country were issued in 1996, and the right to place them was given to Moscow and St. Petersburg. "National Bank of Foreign Economic Activity of the Republic of Uzbekistan" JSC (hereinafter referred to as Uzmilliybank or the issuer) issued 5-year Eurobonds worth 300 million dollars on the London Stock Exchange, thereby becoming a full participant in the international capital market. Uzmilliybank is the leading bank of the republic in terms of attracting funds from international financial institutions and financing investment projects of priority and strategic importance, including the modernization of leading sectors of the economy.The debut issue of Eurobonds was carried out by Uzmilliybank together with internationally recognised underwriting banks such as Citibank (USA), Natixis (France), SMBC Nikko (Japan), and Gazprombank (Russia).The Vietnam War and the restrictions it caused were the second thing that helped the Eurobond market grow.In February 1965, President L. Johnson announced the Voluntary Restraint Program. US TNC subsidiaries were encouraged to raise funds in European markets. In January 1968, Johnson's cabinet imposed direct restrictions on investment outside the United States.From this moment on, the period of rapid growth of the Eurobond market and the emergence of the necessary infrastructure begins. In 1968, the American bank Morgan Guaranty created a clearing house for trading Euroclear bonds; in 1970, its main competitor, Cedel, appeared.In 1969, the largest operators in the Eurobond market formed their own self-regulatory organisation, the International Association of Bond Dealers. In the 1990s, it was renamed the International Securities Market Association (ISMA).
The abolition of capital export restrictions in the 1970s had no effect on the Eurobond market, which continued to develop rapidly. Another impetus for its development was the global debt crisis of the early 80s. Eurobonds are named after the currency in which they are denominated. For example, Euroyen and Eurodollar bonds are denominated in Japanese yen and US dollars, respectively. A Eurobond is a bond issued in a currency other than the legal tender of the country. It operates as a fixed-income debt instrument or security in the Eurocurrency market and has a maturity of 5–30 years. These bonds have low interest rates and zero foreign exchange risk. Thus, it allows corporations to raise capital in foreign currency to expand internationally. The word "euro" in this term refers to the foreign currency in which the bonds are denominated. Hence, it is also known as a "foreign bond" and derives its name from that currency. For example, in the US, a foreign bond issued in Japanese yen would be a euro-denominated bond. Eurobonds attract companies with a small capital market and offer investors a variety of investment opportunities due to their small nominal value. Although this term contains the word "euro," it has nothing to do with Europe or its currency. It takes its name from the euro-currency in which the bonds are denominated, such as euro-dollars, euro-yen, euro-pound bonds, etc. It also differs from the Eurobond, which begins with the capital letter "E" and is issued by the European Union and Eurozone countries. Money can be raised internationally through bond issues and bank loans. This is done in domestic and international markets. The difference is that in international markets, the money may come in a currency that is different from that used by the borrower. A characteristic feature of the international bond market is that bonds are always sold outside the country of the borrower. There are three types of bonds, two of which are international bonds. A domestic bond is a bond issued by a resident of that country. A foreign bond is a bond issued by a foreign borrower in a specific country. Eurobonds are bonds that are sold and issued in several countries. What is the difference between a Eurobond and a foreign bond?Eurobonds:• Issued in a non-national currency• Exempt from government regulations• They are called Eurodollars, Euroyen, Euroyuan, and so on because they are worth that amount of euro currency. Eurobonds are called Eurobonds in financial "dialect." These are long-term securities issued in foreign currency for the issuer (the state, bank, or agency that has the right to issue securities and paper money). The credibility of the issuer is monitored by rating agencies. Eurobonds are issued by governments, international organizations, local state authorities, and large corporations interested in obtaining funds for a period of 1 to 40 years. For the issuer, securities issued in foreign currency are usually placed among foreign investors with the help of an international underwriter syndicate, for which the rule is considered a currency-type security. The prefix "Euro" is used as a tribute to tradition because the first Eurobonds were issued and sold in Europe. Eurobonds are mainly sold and placed in Europe. One type of Eurobonds are "dragon bonds," placed in the Asian (primarily Japanese) market and listed on the Asian exchange. Eurodollar bonds are usually placed in Singapore or Hong Kong.
Foreign bonds are issued by the issuer in any foreign country in the currency of this country and placed in the currency of the country of placement with the help of a syndicate of underwriters from this country. For example, "Yankee" bonds are Yankee bonds in the United States; "Samurai" bonds are Shibosai bonds; "Damio" bonds are daimyo bonds; "Shagun" bonds are shogun bonds in Japan; "bulldog" bonds are English bulldog bonds; "Rembrandt" bonds are Rembrandt bonds in the Netherlands; "matador" bonds are Spanish matador bonds; "kangaroo" bonds are Australian kangarooEurobond market is a conditional concept. Most transactions in the Eurobond market are carried out through the financial centres of London (which accounts for about three-quarters of the Eurobond secondary market), Hong Kong, Singapore, a number of Caribbean countries, as well as, to a lesser extent, New York, which corresponds to the states of Tokyo. To get an idea of the potential of this market, it is enough to say that the volume of transactions with all types of debt obligations exceeds 1.2 trillion dollars every quarter—it is larger than the market of any country. In other words, you can find funds for the most expensive project in the Eurobond market. Therefore, it is not surprising that 95% of all syndicated loans are issued through the Eurobond market. The low rates are the result of a huge increase in deals and participants. The Eurobond market owes its development to the fact that almost all countries have restrictions on operations in the financial market. For example, in 1957, foreign investment was restricted in the United States, and Britain was for a time prohibited from using sterling loans to finance trade between other countries. Unfavorable laws revolve around financiers and access to the Eurobond market. Furthermore, it is frequently the only way to reduce country risk. For example, during the period of hyperinflation after the Second World War, German financial institutions traded almost exclusively in dollars and pounds, and in Russia recently, the main currency of settlement in the context of still high inflation was the American dollar. The Eurobond market is considered attractive in addition to its huge potential, as it allows issuers to conduct arbitrage operations and reduce costs by using differences in exchange rates, interest rates, and tax benefits. A number of the financial centres of the Eurobond market are offshore. By the way, in 1995, Japanese banks carried out almost all medium-term Eurobonds through them. Finally, an important advantage of the Eurobond market is that you can work there 24/7. When the work is finished in Japan, it is in full swing in London, and it is just beginning in New York. Also, in recent years, radical changes began to take place in the socio-economic life of Uzbekistan. In this case, first of all, the development of the economy has moved to a completely new stage aimed at increasing the standard and quality of life of the population. All reforms in the economic sphere were ultimately based on the principle that "human interests and well-being are above all else." In this regard, first of all, the main attention was paid to further strengthening the macroeconomic stability in our country, conducting a strict monetary policy, ensuring the stability of the national currency and prices in the domestic market, and carrying out tax-budget reforms.
There are two main methods of placing Eurobonds in foreign markets used by international companies: The first method involves the direct access of international companies to international capital markets, that is, the borrower and the issuing international company. The second method involves a specially organised company, SPV (English: special purpose vehicle), which issues Eurobonds on its own behalf under the guarantee of an international company, where: SPV is between the company's national subsidiary and participates as an issuer; SPV is a foreign organizer, and the international company refers to it as the issuer.There are two types of placement methods: Through open subscription, i.e., among unlimited investors; Underwriters are loan managers. Such issues are almost always listed on a stock exchange (mainly the LSE or the Luxembourg Stock Exchange). private placement aimed at a small group of investors. Such issues are not recorded on the stock exchange. A rating is required to enter the market. A high rating allows you to lower the cost of the loan by setting the interest rate. issued under the laws of the United Kingdom and the State of New York. Interest and dividends are paid tax-free. The tax is paid according to the laws of the country. Although Eurobonds are usually listed on the London or Luxembourg stock exchanges, they are traded almost exclusively on the over-the-counter market. According to market rules, the lead manager is a market maker in the secondary market. Settlements are made through Euroclear and Clearstream, two depository and clearing systems. The payment is made on the principle of DVP against the payment and is only in the form of documents."On Measures for the Implementation of the Investment Program of the Republic of Uzbekistan for 2021-2023" to bring foreign investments to a new level, ways to increase the investment attractiveness of the country's investment policy in attracting them, and future forecast results are cited. In fulfilling this task, the place and role of commercial banks operating in the republic are considered important. This decision also analysed the experience of foreign countries in attracting foreign investments. Several banks currently operating in our Republic have successfully placed their Eurobonds on the international stock markets, which is one of the ways to increase their efficiency.In short, international financial transactions are developing rapidly in the global Eurobond market. Training personnel to meet these standards is one of the main reforms that should be carried out now. In the future, the expansion of Uzbekistan's participation in the Eurobond market will lead to an increase in the share of capital resources in the international financial market, an increase in the experience of our personnel, and, as a result, an increase in the efficiency of Eurobonds placed at the right time and place. Successful placement of Eurobonds in a wide range of economic entities in the economy will ensure a large accumulation of capital resources and, of course, the coverage of more areas of financing. This will increase our country's investment attractiveness and propel us to the top of the international rankings.
List of used literature:

1.Anders Lindgren - Eurobond issuing procedure.2011

2.https://www.world-exchanges.org/ www.uzse.uz
3.http://www.mf.uz
4.www.el-in.ru
5.www.uzreport.news, 2020-year
6.www.economyjournal.uz
7.http://www.euroclear.com
8.http://www.bloomberg.com