Artel Electronics LLC becomes the largest private company to place a bond on the Tashkent Stock Exchange


The bond on the TSE is Artel’s primary activity in the capital markets, whether nationally or internationally. A wide range of investors participated in the raise, which was oversubscribed.

In its first interaction with the investment community, Artel presented its leading domestic market share, rapidly increasing export sales and strong future growth projections. The increase will be used to replenish the company’s working capital.

Sarvar AkhmedovHead of Capital Markets Development Department, Ministry of Finance of the Republic of Uzbekistansaid: “Artel’s issuance on the TSE is the latest encouraging sign of the development of Uzbekistan capital markets. The Ministry of Finance is committed to building confidence in domestic markets and creating the conditions for an increasingly sound and liquid TSE. We expect other major players to soon see the TSE as an attractive forum to raise capital, which will further develop both their businesses and our country.”

Shokhruh Ruzikulov, CEO of Artel Electronics LLC, added: “We are very proud to have issued our first bond on the domestic market. The TSE, with a pool of regional investors, is the natural forum for our first bond issue. It gives us the opportunity to demonstrate Artel’s solid fundamentals and strong growth prospects. Successfully engaging with the investment community is an affirmation of our hard work to consolidate our business and align with international best practices in ESG and financial reporting.”

The issuance is the natural next step for Artel as the company continues to align with international standards across all of its operations, providing an opportunity to access new forms of financing. This transformation was facilitated by the consolidation of the Group in 2020 under the parent company, Artel Electronics LLC. Total consolidated assets exceed UZS 3.7 trillion ($330 million).

Following extensive tax reforms in Uzbekistan in 2019, which lifted restrictions on the size of companies, private entities were able to consolidate their subsidiaries under holding companies. This allowed them to introduce international standards of corporate governance and accounting practices, and provided them with the scale to access more diversified forms of financing, both domestically and internationally.

In early 2022, a presidential decree was issued which introduced tax incentives to encourage investment in domestic capital markets. Artel becomes the largest private company to issue a bond on the TSE.

Avesta Investment Group acted as lead manager for the transaction.

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SOURCEArtel Electronics LLC

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