Asian Development Bank raises 85 million Georgian lari on offshore bond market

  • The bonds have an amortizing profile and their final maturity is in July 2021. Photo: Asian Development Bank., 26 Nov 2019 - 14:34, Tbilisi,Georgia

The Asian Asian Development Bank (ADB) has raised 85.05 million lari ($28.59/€25.65) from issuing Georgian lari denominated bonds on the offshore market on November 25, 2019.

ADB is a strong supporter of local currency bond markets…Not only does this bond issue contribute to the diversity of ADB’s local currency funding operations, but it also mobilizes investment from international savings pools while supporting a broader recognition and adoption of Georgia’s new risk-free benchmark interest rate,” said ADB Treasurer Pierre Van Peteghem. 

The ADB regularly borrows money by issuing bonds in international bond markets. By that it promotes bond markets as an alternative to bank lending in developing Asian countries. 

The NBG welcomes ADB’s continued efforts to support local currency lending in Georgia… we clearly feel greater interest in lari denominated securities as the currency becomes increasingly popular among emerging market investors,” said NBG Vice President Archil Mestvirishvili. 

The issue of bonds was arranged by Merrill Lynch International and sold to US-based investor.

The issue is structured as a linker bond denominated in Georgian lari but settled in US dollars, and is documented under ADB’s Global Medium-Term Note program, subject to English law, settled in Clearstream and Euroclear and listed on the Luxembourg Stock Exchange,” says ADB. 

The bonds have an amortizing profile and their final maturity is in July 2021. 

The ADB has also issued bonds in 2009 in Philippine pesos, Indian rupees, Indonesian rupiah, and Kazakhstan tenge.

The ADB was launched in 1966 and it has 68 member countries, including 49 from the Asian region. The goal of ADB is to support developing Asia and the Pacific regions. 

In 2018, a total of $21.6 billion of grants and loans was allocated by the ADB for the economic development for these countries.