EBRD pioneers issuance of Eurobonds in Georgian lari

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 five-year bond totalling 120 million GEL (about 49m/€46.7m*) was lead-managed and underwritten by one of the leading banks in Georgia TBC Bank. The coupon on the EBRD’s inaugural GEL-settled Eurobond is linked to the three-month rate on certificates of deposit (CDs) issued by the National Bank of Georgia (NBG).

The EBRD will apply for the bonds to be listed on the London Stock Exchange, following which an application will be made to the NBG for the Eurobond to be eligible for sale and repurchase operations carried out by the NBG.

Issuance of GEL-denominated Eurobonds under the EBRD’s Global Medium Term Note (GMTN) Programme that will be listed on the London Stock Exchange is an important achievement for the Georgian financial sector that will further support the liquidity of the local currency and attract international investors to the domestic market,” said Vakhtang Butskhrikidze, CEO of TBC Bank.

We hope that increased availability of GEL-denominated AAA-rated bonds will increase the attractiveness of the Georgian capital markets for local and foreign investors alike,” added Archil Mestvirishvili, Vice Governor of the NBG.

This transaction is in line with the EBRD’s strategy in Georgia to deepen financial intermediation and develop local currency and capital markets to enable the local private sector access to finance.

To date, the EBRD has invested a total of €30.1 billion in 205 projects in various sectors of the Georgian economy.

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