Georgian Finance Minister: ‘low coupon rate on Eurobonds will save budget about 350 mln GEL over next 5 years'
Lasha Khutsishvili said that such a low rate 'has never been seen before in our region'. Photo: Nino Alavidze/Agenda.ge.
Tweet 
Share
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".
Georgia has officially announced the placement of $500 million Eurobonds on the London Stock Exchange, announces the Ministry of Finance of Georgia.
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 government of Georgia has taken on internal debt of 35 million GEL as a result of the sale of 5-year securities, announces the National Bank of Georgia.
The Asian Development Bank (ADB) has invested $20 million in green bonds issued by Georgian Railway with the proceeds to be used primarily to roll over maturing Eurobonds that it had issued to improve existing railway lines as a part of an ongoing modernisation project, announces the ADB.
In a bid to promote climate finance and capital market development in Georgia, the International Finance Corporation, the European Bank for Reconstruction and Development and the Asian Development Bank have invested in the country’s first green bond.