International Finance Corporation invests in Bank of Georgia landmark Eurobond

NBG noted the volume of money transfers from abroad constituted $91m Photo by N. Alavidze/, 02 Jun 2017 - 13:20, Tbilisi,Georgia

The International Finance Corporation (IFC) is helping to attract international financing in local currency for Georgia’s private sector to boost job creation and economic growth.

IFC, a member of the World Bank Group, has supported Bank of Georgia in its inaugural local currency Eurobond issuance by investing 108.34 million GEL, equivalent to approximately $45 million.

As the anchor investor, IFC announced its commitment to purchase up to 30 percent in the bank’s planned issuance early on, supporting the offering during the investor roadshow and helping to strengthen confidence in the upcoming transaction. Bank of Georgia’s bond issuance has attracted 500 million GEL (about $207m/€184m*) from about 20 international investors.

The success of this landmark transaction demonstrates the confidence of international investors in Georgia’s currency and economy, and will help connect them to Georgia’s private sector financing needs,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus.
It will also allow the bank to provide much-needed local currency financing to more retail borrowers and small and medium businesses, to help them expand, create more jobs, and boost economic development”, Bilsen added.

The three-year bond is the first offshore local currency bond issued by Georgia, and also the first in the past decade from a former member of the Soviet Union, other than Russia.

The issuance will allow the country’s leading bank to boost long-term local currency financing, which enables businesses to grow and avoid risks related to borrowing in foreign currency. The issuance will also support the country’s de-dollarisation efforts, aimed at reducing its reliance on foreign currency.

*Currency conversions reflect National Bank of Georgia values as of today.