The debt market is experiencing a historic boom. Based on trading results, the retail bonds section of the Republican Stock Exchange (RSE) "Tashkent" showed record turnover of 1.8 trillion soums, surpassing the stock market by more than 27 times. Investors are massively transferring their funds from ordinary bank safe deposit boxes and deposits into debt securities.
The reason for this phenomenon is simple: with official annual inflation at 5.5% and the Central Bank's base rate at 14%, the yield on reliable bonds in the local market has soared to 24–27% per annum. The government has maintained a unique 0% tax rate on coupon income for individuals.
Let's figure out exactly how much a private investor can earn on debt securities and what determines the final profit.
What Makes Up Your Bond Earnings?When you buy a bond, you are essentially lending money to a large business or the government at a clearly agreed interest rate. Your total income comes from two independent sources:
- Coupon income: Regular interest payments that the issuer transfers to investors for the use of their capital. Payments arrive cyclically—monthly, quarterly, or semi-annually. For example, fresh listing issues (such as Biznes Finance corporate bonds with the ticker BFMT2B5) offer a 28% coupon per annum with monthly payments.
- Discount income (profit from price difference): On the exchange, bonds trade as a percentage of their par value (the base price of the security, which is most often 100,000 soums). If you bought a bond at par value and the current price is 115,000 soums, you can already lock in a 15% profit.
How Much Does the Debt Market Really Bring In?
When assessing the real strength of your capital on the exchange, professionals never look at bare numbers. They clean nominal income from inflationary friction using the real interest rate formula:
How Accrued Coupon Income Works: Bonds' Secret Weapon Against Deposits
The main downside of a regular bank deposit is that if you urgently need your money and close the deposit early, the bank will cancel all accrued interest. Bonds are completely free of this drawback thanks to the accrued coupon income mechanism (ACI).
Bond interest accrues continuously every day. If you held the security for 45 days within a quarter and decided to sell it on the exchange, the new buyer must pay you the coupon income accumulated over those 45 days on top of the bond's price. You can exit the asset on any business day without losing accumulated profit.
Instruction: How to Start Earning on Bonds
The process of purchasing debt securities is fully digitized and takes minimal time.
Step 1: Open a Brokerage Account Online
Download the mobile app of a licensed brokerage firm. Complete quick verification using your ID card—the system will link your 14-digit PINFL to the Central Depository.
Step 2: Top Up Your Balance Commission-Free
Attach your Uzcard or Humo card to the app. Transfer your desired amount.
Step 3: Analyze the Issue Parameters
Go to the "Bonds" section. Don't chase only the highest percentage. Visit the Unified Portal of Corporate Information (openinfo.uz), verify the issuer's financial stability, and note the frequency of coupon payments.
Step 4: Place Your Order and Start Reinvestment
Specify the number of lots and confirm your limit order in the exchange order book. After the transaction, the securities will appear in your portfolio. The key rule is to immediately direct all incoming coupons toward purchasing new bonds, creating exponential capital growth through compound interest at 0% tax.
Essential Advice for Investors
Bonds are an ideal instrument for those seeking predictability and peace of mind. They provide fixed returns that significantly exceed official inflation without requiring daily monitoring of news or charts. Choose a reliable broker, build a diversified portfolio from 3–4 issuers, and let Uzbekistan's tax-free environment steadily grow your savings.