The bonds were placed on the Georgian Stock Exchange in the national currency, which allows the company to avoid currency risks. "Nikora” will use the proceeds received from the bond placement to refinance its existing liabilities and finance the company's future development plans.
Bonds with 100% par value were fully placed. Their annual interest rate was determined by adding 3.5% to the three-month interest rate of the Tbilisi Interbank Lending Rate (TIBR3M).
The company received a credit rating from Scope Ratings and it was defined as BB- level.
This bond transaction is the 5th successful placement for "Nikora Group" and TBC Capital and the 2nd successful joint placement for "Nikora Group" and Galt & Taggart.
The Pension Agency has invested in the issue, which is the first domestic corporate securities it has purchased so far.
Financial institutions showed great interest in the bonds and the placement was completed in a short period of time. Like other public bonds issued in GEL, these bonds can also be pledged at the National Bank of Georgia, giving investor commercial banks the opportunity to attract additional resources in GEL at an affordable price.
For many years, "Nikora" has been actively working with its partners to develop diversified sources of financial resources and has successfully conducted securities-related transactions . Each time the interest is very high. It is significant that the Pension Agency has invested in "Nikora" bonds for the first time in Georgia, which is a proof of the great confidence in our company. "Nikora" has an international credit rating (BB- with a stable outlook), which is the best assessment of the company in terms of both reliability and financial transparency . The issue of securities allows us to use the attracted resources for the development of the company itself, which is an important prerequisite for creating new jobs. We thank all the participants for their participation and successful activities,” says Irakli Bokolishvili, Director General of JSC "Nikora".
“We have been cooperating with the Nikora Group since 2017. This 5th issue placed with the participation of TBC Capital is a clear example of our successful partnership and another step forward in the development of the local capital market. It should be noted that out of the total 5 issues, 2 were placed by JSC "Nikora Trade" and 3 by JSC "Nikora". We are also pleased that with the support of the Pension Agency, the Capital Market we facilitated finding alternative sources of financing. It is important that TBC Capital is actively involved in the placement of local bonds, thereby helping to make Georgia an attractive country for both local and foreign capital", - Mary Chachanidze, Managing Director of TBC Capital.
“I am pleased to note the role of Galt & Taggart in the placement of 'Nikora Group" bonds and congratulate the company on another successful placement, which indicates the high confidence of investors in "Nikora Group.” It is noteworthy that by participating in this transaction, the Pension Agency has for the first time invested in corporate debt securities issued on the Georgian market. Thus, this way another strategically important institutional investor has been added to the local capital market. We hope to see a number of similar transactions in the future, which is probably especially important for bond issues in GEL. I would like to join our colleagues in congratulating the entire Galt & Taggart team on another success. Galt & Taggart has been effectively cooperating as an investment bank in the Georgian market for many years, both with various private and public sector representatives as well as international financial institutions," - Otar Sharikadze, Managing Director of Galt & Taggart.
"First of all, I would like to congratulate the company "Nikora" on yet another successful emission, which testifies to the sustainable development of the company and the high trust of investors. I would also like to thank the teams of Galt & Taggart and TBC Capital for such an efficient work and successful completion of this placement. We are pleased to have participated in Nikora's bond placement, which serves the best interests of our participants first and foremost. This is our first investment in the local corporate bond market, which we have always been following and, as expected, we see its activation, especially in terms of the new emissions. We hope that this successful placement and our participation in it will be a certain incentive for new local issues, which will allow us to successfully invest pension savings in the securities of the Georgian companies and promote the development of the local capital market", - Goga Melikidze, Senior Investment Officer of the Pension Agency.
