Georgia officially announces placement of $500 million Eurobonds on the London Stock Exchange
Given the current situation in the international financial markets, it is expected that the Eurobonds will have a significantly lower interest rate compared to the Eurobonds issued in 2011, which amounted to 6.875%. Photo: Ministry of Finance.
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Georgia has officially announced the placement of $500 million Eurobonds on the London Stock Exchange, announces the Ministry of Finance of Georgia.
The Ministry of Finance of Georgia, together with selected international and local investment banks (JP Morgan, Goldman Sachs, ICBC Standard, TBC Capital and Galt & Taggart), legal advisors (Backer & McKenzie and BLC) and international fiscal agent (Citi), has completed the preparatory stage for placement the Eurobond on the London Stock Exchange.The transaction was officially announced today on the Bloomberg trading platform", reads the press-release published by the ministry.
Online meetings (so-called net-road-shows) with international investors will be held on April 13 and 14.
This process will be completed in the coming days by the Ministry of Finance of Georgia, on behalf of Georgia, by placing Eurobonds worth $500 million on the London Stock Exchange", says the ministry.
Given the current situation in the international financial markets, it is expected that the Eurobonds will have a significantly lower interest rate compared to the Eurobonds issued in 2011, which amounted to 6.875%.
In order to effectively manage public debt, the Georgian government is preparing for the issuance of a new Eurobond, announces Georgian Prime Minister Irakli Garibashvili.
“I wish these transactions took place on our capital market”
Georgian Prime Minister Mamuka Bakhtadze praised the recent activities of the Bank of Georgia and Silknet telecommunication company on the international financial market and said the fact that Georgian companies are attracting new finances into the Georgian economy is indicative of the high level of trust of international investors in Georgia.
The European Bank for Reconstruction and Development (EBRD) has marked a historic milestone by issuing its first-ever Eurobond both denominated and settled in Georgian lari (GEL).
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.
The Ministry of Finance of Georgia has completed the placement of $500 million Eurobonds on the London Stock Exchange with a maturity date of five years and a coupon rate of 2.75%. Georgian Finance Minister Lasha Khutsishvili says the state budget of Georgia will save about 350 million GEL thanks to the low coupon rate.
Georgia currently owes $20.6 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG). During the first quarter of 2021, the gross external debt of Georgia increased by $22.6 million.