Corporate credit leads the way
With falling GDP per capita and minuscule foreign direct investment, things could be going better in Uzbekistan. One positive development, though, is the corporate bond market.
Alisher Djumanov, managing director at Carthill Asset Management, admits there isn't much capital market business in Uzbekistan. Indeed, when Euromoney told an official at one multilateral institution it was writing an article on the Uzbek capital markets, he replied: "That's going to be a short article." What little business there is in large part is thanks to Carthill's efforts.
Djumanov says: "We made a conscious effort to be the first western-style investment bank in Uzbekistan, the first to cover investment banking, research, asset management and brokerage - even when volumes are small. So when they grow, we'll get the return on our investment."
|Uzbek corporate bonds|
|1||Nov 01||JV Max Khurason||Beverages||100||27%||9 months|
|2||Apr 02||JV N.Com||Computer hardware||200||27%||12 months|
|3||May 02||NCI Projects||Software||300||26%||24 months|
|4||May 02||Asklepiy||Pharmaceuticals||270||27%||12 months|
|5||Sep 02||JV Coscom||Wireless telecoms||1,000||29%||24 months|
|6||Oct 02||JV SovplastItal||Plastics||1,000||29%||12 months|
|7||Dec 02||Almalyk Mining||Mining||2,000||29%||24 months|
|8||Jan 03||JV Max Khurason||Beverages||200||29%||12 months|
|9||Jan 03||Pallada Vostok||Comsetics||600||29%||12 months|
|10||Feb 03||JV Osiyo West||Food||500||29%||12 months|
|Source: Carthill Asset Management|
The bank was set up in April 2001 as a subsidiary of UK-based commodity firm Carthill Investment Company.