Georgia Issues $500 Million Eurobonds on the London Stock Exchange Through the Ministry of Finance16 Apr, 2021
After a 10-year pause, Georgia has successfully returned to the international securities market and was able to place a Eurobond at an unprecedentedly low price for the country. The demand of investors was four times more than the amount of the bond, which once again underscores their confidence in the Georgian economy.
The issuance of Eurobonds by the state is important for the development of the capital market in the country, as well as for Georgian companies that are going to raise money from international markets.
The government Eurobond will be a benchmark for other Georgian current and future securities. The low benchmark will significantly help other Georgian companies to place securities in international markets at a better price.
"It is very gratifying that the state has placed Eurobonds on the London Stock Exchange on such unprecedentedly good terms. Positive investor sentiment was reflected primarily in increased demand and low interest rates, which are historically the lowest in the region. In the future, it will help develop the capital market in the country and Georgian companies to place bonds on international or local exchanges, "- said Vakhtang Butskhrikidze, CEO of TBC.
The eurobond volume is 500 million dollars, term 5 years, coupon 2.75%. This improtant deal was done with the help of international banks: JP Morgan, Goldman Sachs, and ICBC, as well as, Georgian investment banks TBC Capital and Galt & Taggart.