IFC issues first Iveria bond to support capital market development in Georgia
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The International Finance Corporation (IFC) is issuing a 30 million GEL bond (about $15 million USD) to support Georgia’s capital markets. This is IFC’s first local currency issuance in Georgia.
The Iveria bond, named after an ancient kingdom based in present-day Eastern Georgia, is part of a 200 million GEL bond program and creates a pricing benchmark for future IFC issuances in Georgia’s domestic capital markets. Under the program, IFC can issue Lari-denominated bonds when market opportunities align with the funding needs of the country’s private sector.
"The IFC Iveria bond is an essential part of IFC’s strategy to support Georgia’s capital market development,” said Jingdong Hua, IFC Vice President and Treasurer.
"Deep, liquid capital markets are the foundation for sustained economic growth because they efficiently channel investment to key sectors such as infrastructure and housing, which in turn generate jobs and growth,” he added.
Giorgi Kadagidze, the President of the National Bank of Georgia, said: "The IFC bond marks an important milestone in the partnership between Georgia and IFC. It signals a strong vote of confidence in the outlook for Georgia amid market volatility. We hope it will pave the way for other high quality issuers to come to Georgia’s domestic capital markets.”
Galt and Taggart, the wholly-owned investment arm of the Bank of Georgia, acted as the arranger for the bond. IFC, a member of the World Bank Group, has issued bonds in 16 local currencies, including the Armenian dram, Brazilian real, Chinese renminbi, Indian rupee, and Nigerian naira.
IFC Iveria Bond Summary Terms and Conditions:
- Issue amount: 30 million Georgian GEL
- Pricing date: February 17, 2015
- Settlement date: February 17, 2015
- Maturity date: February 17, 2017
- Coupon: 6.924%
- Coupon Frequency: Semi-annual
- Repayment: Bullet on maturity date
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