Georgia priced a USD 500 MLN Eurobond on London Stock Exchange

16 Apr, 2021
  • The Eurobond volume is USD 500 mln with coupon rate of 2.75%, maturing in 5 years. The deal was managed by the syndicate of international banks: JP Morgan, Goldman Sachs, and ICBC, as well as, Georgian investment banks: TBC Capital and Galt & Taggart
  • The 2.875% yield and the 2.750% coupon marked the lowest rates in the Georgian fixed income placement history, forming a new benchmark for future Georgian issuances
  • The previous sovereign Eurobond, which matured on April 12th 2021, was settled with excess liquidity of the state budget, hence the use of proceeds of the new Eurobond is for general budgetary purposes
  • The low coupon rate marks a huge achievement for Georgia, standing competitively among comparable Eurobonds of regional countries. For comparison, sovereign Eurobonds of Ukraine and Uzbekistan with the same maturity trade in the range of 3.444%-5.157% as of April 15th 2021
  • The IPT for the new Eurobond was set at c. 3.25%, however high demand, with books being in excess of USD 2bn, tightened the price lower
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