Georgian Railway to Issue 500 million USD Green Bonds

18 Jun, 2021

JP Morgan, Citi, Renaissance Capital are the leading agents of the transaction, and Galt & Taggart act as a co-manager. Legal advisors for English and American directions are Dechert and Linklaters, while from the Georgian side MG Law and BLC Law representatives.


Unprecedented interest has been expressed in regards with Georgian bonds and total demand has exceeded 4 billion USD, what has enabled the banks and issuer to decrease the initial scope of the bond coupon from 4.875%-5.000% to 4.00%.


Issuance of the bonds were supported by international financial institutions such as: EBRD and ADB, commitment of which contributed to high demand on the bonds. In the end, 80% of the assets were purchased by leading companies and investment funds- 41% Great Britain, 35%- Continental Europe, 19% the United States of America.


Bonds have been placed on London Stock Exchange and it is expected that, Fitch Ratings and S&P will give it credit rating of BB and B+ respectively.


It shall be noted that, last time Georgian Railway has placed 500 million USD Eurobonds in 2012 with the rate of 7.75%. Obtained resources have been used to refinance these bonds 1 year earlier than scheduled. Also, Georgian Railway plans to use income generated for implementation of green infrastructural projects.


This emission is sixth placement of Eurobonds carried out by TBC Capital from 2019.


„First of all, we would like to congratulate Georgian Railway on successful transaction and we are glad, that regardless the period full of hardship and challenges, Georgia managed to place Eurobonds again. Such a high demand on the bonds highlights investors’ interest in the issuer and distinguished level of activities carried out by the issuer during the entire virtual roadshow. It is important, that TBC Capital is involved in placement of not only local, but also international bond, what once again proves that Georgia is attractive country for international capital. Bond issued by Georgian Railway is second green Eurobond issued from Georgia. It is noteworthy, that last year, TBC Capital was co-manager of issuance of the first green Eurobond by “Georgia Global Utilities”. Placement of second green Eurobond during past two years highlights country’s and companies’ long-term interest in sustainable development”- said George Tkhelidze, Deputy Director General of TBC.


“For the first time, in the Caucasus Region the transportation company has placed 500 million USD worth green bonds on the London Stock Exchange. Because of the refinancing, the initial scope of the bond coupon decreased from 7.75% to 4.00%. Therefore, the company will have to pay USD20mln instead of USD40mln annually. The amount saved from the transaction will be utilized for the company development. Once again, I would like to express my appreciation for the Georgian Railway team and all involved partners” – said David Peradze, General Director of Georgian Railway.

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