AKFA Aluminium Explores International Bond Issuance Amid Corporate Governance Reforms

AKFA Aluminium Group, one of Uzbekistan's largest private companies in the aluminium sector, is reportedly exploring the issuance of its first international bonds. The move signals a significant step in the company’s corporate development and financing strategy as it seeks to diversify funding sources and enhance transparency.

According to Bloomberg, AKFA Aluminium has engaged global investment banks Citigroup and JPMorgan to organize a two-day investor roadshow in London set to commence on July 13. This roadshow aims to introduce the company to international investors, laying the groundwork for the potential bond issuance.

However, the company has not committed to an immediate bond placement, with initial meetings described as exploratory. Both Citigroup and JPMorgan declined to comment, and AKFA Aluminium did not respond to requests for further information.

Strategic Corporate Developments and Governance Enhancements

On May 8, AKFA Aluminium announced a decision to initiate an initial public offering (IPO), marking a strategic milestone in its evolution as a joint-stock company. The IPO initiative is positioned as a means to improve corporate governance, increase transparency, and strengthen disclosure practices — key factors in attracting institutional investors and expanding capital market participation.

"This decision represents an important phase in AKFA Aluminium's development as a joint-stock company, aimed at enhancing corporate transparency and refining management structures," company representatives noted.

Founded in 2000 by entrepreneur and former Tashkent mayor Jahongir Ortiqxo‘jayev, AKFA Aluminium produces aluminium and plastic products primarily for the construction industry. The company exports its products to over 30 countries, positioning itself as a competitive player in the regional metals market.

Supported by a B+ credit rating from S&P Global Ratings, maintained consistently over the past two years, AKFA Aluminium demonstrates creditworthiness that could appeal to bond investors. The company’s charter capital amounts to 664.8 billion Uzbek soum, with ownership equally split between Jahongir Ortiqxo‘jayev and Nigora Ortiqxo‘jayeva. Operational leadership is provided by CEO Bahodir Abdullayev.

Financial Performance and Market Context

While the company projects revenues of approximately 31.23 billion soum for 2025, it operates within a complex market landscape. Related enterprises and investment funds linked to AKFA have recently reported financial losses, including a 417.4 billion soum deficit in the first quarter of 2026 by a national investment fund holding a significant stake in the company.

Industry experts emphasize cautious interpretation of these figures. Farrukh Khodjaev, head of KAP DEPO, highlighted that reported losses largely stem from revaluation adjustments of investment portfolios rather than actual cash outflows.

"The key task for the market is to correctly interpret financial statements and not confuse operational issues with accounting revaluations," noted Khodjaev. "These revaluations affect profit and loss metrics even if assets have not been sold, categorizing the losses as 'on paper'."

This distinction is critical for investors assessing AKFA Aluminium's financial health as it pursues international bond issuance amid ongoing corporate reforms.

AKFA Aluminium’s initiative to access global debt markets reflects a broader trend among Central Asian private enterprises aiming to capitalize on international investor appetite and diversify funding beyond traditional bank loans. Should the bond issuance proceed, it would mark a historic first for the company and potentially influence the region’s capital market dynamics.