Georgian Finance Minister: ‘low coupon rate on Eurobonds will save budget about 350 mln GEL over next 5 years'

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.

The current bonds actually refinanced Eurobonds issued in 2011 at a coupon rate of about 2.5 times higher (6.875%) and were repaid on April 12 this year. Due to the fact that the coupon rate now is much lower for the next five years, the budget will save about 350 million GEL", said Khutsishvili.

He added that such a low rate 'has never been seen before in our region'. 

With this transaction and this coupon rate, we have created a new, truly historic landmark...which will be important for private companies as it makes it much easier and cheaper to attract investment to our country...This [is indicative] of confidence from international investors in Georgia's economy...investors are mainly from the United States, the European Union and the United Kingdom", Khutsishvili said.

Khutsishvili said that one of the main determinants of such a low coupon rate was the country's sovereign rating, which has improved in recent years from "B+" to "BB".